Posted on 09/14/2006 9:29:10 AM PDT by AdamSelene235
WASHINGTON, Sept 13 (Reuters) - The former top two executives of Fannie Mae who were ousted due to a massive accounting scandal at the mortgage finance giant are likely to be sued by the company's federal regulator, the regulator's chief said on Wednesday.
James Lockhart, head of the Office of Federal Housing Enterprise Oversight, said Fannie's former chief executive, Frank Raines, and former chief financial officer, Timothy Howard, are expected to be among those named in any litigation.
"We will more than likely be filing litigation against them," James Lockhart, head of the Office of Federal Housing Enterprise Oversight, told a roundtable on the future of Fannie Mae. A spokeswoman for Lockhart reported his remarks to Reuters.
When asked if Raines and Howard would be named in any litigation, Lockhart said they "are the top two," the spokeswoman reported.
Fannie Mae (FNM.N: Quote, Profile, Research) -- which in May was fined $400 million after a U.S. probe of its $11 billion accounting scandal blamed management, the board and an "arrogant and unethical" culture for massive profit manipulation -- has until the end of September to report on what role former executives might have played in the scandal.
OFHEO in a report released in May said that Raines and Howard played a major part in using faulty accounting to hit executive bonuses.
Fannie Mae and its cousin, Freddie Mac, are private companies with a government charter to promote affordable housing.
Last month, the U.S. Justice Department announced that it had dropped its investigation into accounting problems at Fannie Mae. A similar investigation into Freddie Mac, which was also hit by an accounting scandal, was dropped this week, the company said.
Lockhart spoke Wednesday while taking part in a roundtable about the future of Fannie and Freddie sponsored by the American Enterprise Institute.
Concerned Citizens About Government Waste has been telling America for the last several years what was going down at Fannie Mae and Freddie Mac.
These two guys make Enron look like nothing. But I will believe the investigation is serious when I see the indictments because these are Clinton people and so the rules don't apply to them.
Clinton Legacy pingaroonie!
Finally!
Notice Reuters buries any mention of Jamie Gorelick, who was Fannie's EVP and chief legal officer when all these shenanigans occurred.
Jamie Gorelick of FBI/CIA wall fame left the Justice Dept to become Vice Chair of Fannie Mae during this time. I hope she is named in lawsuit as well so the American public can maybe finally realize what a self serving pos she is.
Fannie Mae's Vice Chair Jamie Gorelick to Step Down in July; CFO Timothy Howard to Become Vice Chairman.....
I would be that Gorelick is on the list to be sued, or she's done a plea bargain to payback the illegal bonuses so she won't be named in the lawsuit.
Gorelick's going to have to pay back her ill-gotten gains.
Now if she would would only be sent to GITMO for her role in 9/11.
Isn't Gore-Lick, of 9-11 (in)fame(y) drawing a couple a hundred grand a year even now from there?
I believe that Jamie Gorelick was on their board??
Thanks for the ping!
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