Posted on 08/11/2005 1:40:17 PM PDT by hripka
It's both!
...sounds like an association we know?
Fraud, fraud, fraud. Perpetrated by Democrat hack Frank Raines and his co-hack Jamie Gorelick. Fannie Mae had been manipulating its earnings for YEARS....using bizarre and arcane derivative hedges and inappropriately accounting for them in order to hit their earnings per share target that resulted in maximum bonuses for Fannie Mae executives....Gorelick got almost a million dollars. Raines raked in millions while donating thousands to Democrat candidates. It is taking the new regime at Fannie Mae an incredible number of man-hours to unravel all the fraud and go back and correctly account for everything. The earnings restatement may be upwards of $20 billion. It was a huge and complicated fraud scheme. Jamie Gorelick was the General Counsel while it was being perpetrated.
Let's say I'm selling a house.I put a price on it..and the true value of that house is what a seller is wilng tompay..and I to accept.. The transaction could be completed in one day..
But assume I die, and my executor has to value the house for estate tax purposes, in order to file the requisie federal and state returns. The procedure to obtain a fair market valueat time of death requires that the executor get several appraisals, very detailed,a nd also comparable recent transactions..to document and support the assigned value..it's longer, harder, and must be able to withstand more detailed scrutiny than just a simple acceptance of an offer to buy/sell
Isn't Fannie Mae a financial company? Isn't it their JOB to keep correctly priced asset on their books?
Not 1 year, 5 YEARS. They are restating back to 2001.
FNM estimates it will take 1000 man-years to correct their books.
Bubble Ping
If Fannie Blows, you lose:
Your "safe" money market 401K fund (full of short term FNM paper).
Your "high quality" bond funds.
The money center banks:JPM,C,D-bank (FNM derivative counterparties)
Many small banks (many of them hold GSE paper as cash equivalents).
The dollar
The housing market
Bummer, huh?
The press release also says that it will take six to eight million labor hours to finish. 50 weeks times 40 hours per week is 2000 hours per year (one man-year) . Six million hours divided by 2,000 hours is THREE thousand man years to finish their books
This was Bill Clinton's sand box
GoldBricker !
;-)
And all while continuing to conduct our (fraudulent) business.
Has anyone mentioned Jean Gorelick (of wall infamy) yet?
Ding! Ding! Ding!
See #4
Here's a blast from 2002!
Q&A with Fannie Mae's Jamie GorelickThe vice-chairman sees "a very, very strong 2002" and says Fannie and Freddie are "managed safely"
In the wake of the Enron disaster, Federal National Mortgage Assn. (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac), the federally chartered mortgage banks that experienced explosive growth in 2001, have come under increased scrutiny. Once again, Republicans in Congress are threatening to conduct an investigation into the activities of the two -- No. 7 and No. 2, respectively, on this year's BusinessWeek 50 list of top performers -- some say in hopes of revoking the portions of the Fannie and Freddie charters that gives an implicit government guarantee to their borrowing.
BusinessWeek Associate Economics Editor Margaret Popper spoke with Fannie Mae Vice-Chairman Jamie Gorelick for BW Online about the prospects for the coming year. Edited excerpts from their conversation follow:
Q: How did last year's economic turmoil affect your credit losses?
A: We are very well protected against credit losses, which fell to their lowest level in a generation -- since 1983 -- last year. They went from four basis points [0.04%] down to under one basis point [0.01%] of our outstanding portfolio. We believe that while credit losses may rise somewhat in the aftermath of the recession, they are likely to remain quite low in 2002.
(Excerpts from Business Week Online, Spring 2002
http://www.businessweek.com/bw50/content/mar2002/a3776033.htm)
Is she still on the board of Defense, Industrial and Public Sector giant Unitied Technologies? She joined it in 2000. What a charmed life.
The board is flush with democrat politicos. Obviously that is synonymous with fraud, and when caught they'll claim incompetence.
Oh yeah, when in doubt or at a loss for an explanation, bring in consultants.....plenty of 'em ;-)
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