Posted on 12/18/2006 12:01:17 PM PST by Lunatic Fringe
Edited on 12/18/2006 2:45:32 PM PST by Admin Moderator. [history]
U.S. Files Civil Charges Against Former Fannie Mae Chief Raines, Other Top Executives
WASHINGTON (AP) -- The government on Monday filed civil charges against former Fannie Mae chief Franklin Raines and the mortgage giant's former finance chief and controller, seeking fines and the return of millions in bonus money said to be tied to an improper accounting scheme.
The Office of Federal Housing Enterprise Oversight announced that it filed 101 charges against Raines, former chief financial officer Timothy Howard and former controller Leanne Spencer.
Raines and Howard were swept out of office two years ago in the multibilllion-dollar accounting scandal at the government-sponsored company, which finances one of every five home loans in the United States.
The charges "reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over 20 accounting principles, and misleading the regulator and the public," OFHEO Director James B. Lockhart said in a statement.
OFHEO, the regulator for Fannie Mae and Freddie Mac, its smaller sibling in the $8 trillion home-mortgage market, last May issued a blistering report alleging a six-year accounting fraud at Washington-based Fannie Mae, the second-largest U.S. financial institution after Citigroup Inc.
The regulators said the scheme included manipulations to reach quarterly earnings targets so that company executives could pocket hundreds of millions in bonuses from 1998 to 2004.
All Clintonites IIRC.
I won't be happy until "Stone Wall" Gorelick is in that list...
Schadenfreude - and loving it.
The Clinton appointees are still being indicted, almost 6 years after he left office.
Don't worry, though... Hillary will pardon him.
He really knew how to pick them.
link?
Gorelick was at Freddie, wasn't she? Of course, Freddie's got big problems, too.
How about Gorelick?
You beat me to it. Gorlick was in that bunch at Fannie Fraud too.
http://www.fanniemae.com/newsreleases/2003/2340.jhtml?p=Media
(SNIP)
January 10, 2003
Fannie Mae's Vice Chair Jamie Gorelick to Step Down in July; CFO Timothy Howard to Become Vice Chairman
WASHINGTON, DC -- Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced that Vice Chair Jamie Gorelick has advised the company she will step down on July 1, 2003, to devote substantial time to the bipartisan national commission investigating the attacks of September 11, 2001 and to pursue other interests. The company also announced that its Executive Vice President and Chief Financial Officer, Timothy Howard, will succeed Gorelick as Vice Chair, and will be nominated to be elected to the Board of Directors at the annual meeting in May.
"Jamie Gorelick's leadership is a big reason why Fannie Mae is a great company that achieves its mission of bringing the American Dream to all Americans," said Fannie Mae's Chairman and CEO Franklin D. Raines. "Jamie's unwavering focus on our corporate responsibility has made Fannie Mae the market leader in serving minority and lower-income families, a model corporate citizen, and one of America's best places to work."
"All of us at Fannie Mae are extremely proud of Jamie's commitment and service to the company and her devotion to the American Dream business," Raines said. "But we are also proud of her lifelong devotion to public service and her commitment -- and the unique contributions she will make -- to helping our nation understand and learn from the events that led to the searing tragedy of September 11th. We appreciate her dedication to the company and to our nation, and we will deeply miss her presence at Fannie Mae."
Gorelick joined the company in May 1997 as Vice Chair. As a member of the Office of the Chairman, she has shared responsibility for the overall management of the company, directed its efforts to reach underserved markets and has overseen Fannie Mae's external relationships, legal and regulatory affairs.
I clicked on it, hoping to see Gorelick indicted.
All I want for Christmas is to see Jamie Gorelick frog marched to jail.
http://www.washingtonpost.com/wp-dyn/articles/A32845-2005Apr6.html
(SNIP)
False Signatures Aided Fannie Mae Bonuses, Falcon Says
By Kathleen Day and Terence O'Hara
Washington Post Staff Writers
Thursday, April 7, 2005; Page E01
Fannie Mae employees falsified signatures on accounting transactions that helped the company meet earnings targets for 1998, a "manipulation" that triggered multimillion-dollar bonuses for top executives, a federal regulator said yesterday
Civil charges?? If they were Pubbies there would be criminal charges. This case will go nowhere as it will be largely ignored by MSM.
Enron was the center of all evil because Dick Cheney had a nodding acquaintance with them. Since Fannie Mae is run by DemonRats, they'll get 5 minutes in jail and have to pay back 3% of the proceeds that they got through fraud. All things considered, paying back a couple of hundred mil for an $8 billion dollar scam shows a great return on investment, but you have to know a Kennedy or Klinton to get in!
In the grand scheme of things, Fannie Mae is MUCH more important than Enron. Fraud at such a large financial institution should be treated more seriously than Enron was (which was overzealously).
Excellent!
http://www.fanniemae.com/newsreleases/2003/2340.jhtml?p=Media
Excerpt:
""Jamie Gorelick's leadership is a big reason why Fannie Mae is a great company that achieves its mission of bringing the American Dream to all Americans," said Fannie Mae's Chairman and CEO Franklin D. Raines. "Jamie's unwavering focus on our corporate responsibility has made Fannie Mae the market leader in serving minority and lower-income families, a model corporate citizen, and one of America's best places to work."
"All of us at Fannie Mae are extremely proud of Jamie's commitment and service to the company and her devotion to the American Dream business," Raines said. "But we are also proud of her lifelong devotion to public service and her commitment -- and the unique contributions she will make -- to helping our nation understand and learn from the events that led to the searing tragedy of September 11th. We appreciate her dedication to the company and to our nation, and we will deeply miss her presence at Fannie Mae."
Gorelick joined the company in May 1997 as Vice Chair. As a member of the Office of the Chairman, she has shared responsibility for the overall management of the company, directed its efforts to reach underserved markets and has overseen Fannie Mae's external relationships, legal and regulatory affairs.
"This has been an extremely hard decision for me because I am so proud of the role that our company plays in the housing finance system," Gorelick said."
Good, these crooks should be punished severely.
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