[CutePuppy]

http://www.latimes.com/business/la-fi-fannie21feb21,1,1841837.story?coll=la-headlines-business

Fannie Mae to withhold bonuses from executives
February 21, 2007

Fannie Mae said Tuesday it would withhold $44.4 million in bonuses to former and current executives, including Chief Executive Daniel Mudd.

The mortgage finance company will deny the long-term incentive pay to 46 former and current executives, Fannie Mae spokeswoman Janis Smith said.

Fannie Mae in December said it overstated earnings from 2001 until mid-2004 by $6.3 billion.

Mudd, who has been with Fannie Mae since 2000, won't receive $4 million from that period because of the inflated performance. Others who will be denied bonuses are Chief Business Officer Robert Levin, $2 million; Chief Operating Officer Michael Williams, $1.85 million; former CEO Franklin Raines, who was ousted in 2004 because of the accounting mistakes, $11.2 million; Chief Financial Officer Timothy Howard, $3.37 million; and former Controller Leanne Spencer, $370,000.

[Liz]

The Office of Federal Housing Enterprise Oversight filed a 101-count notice of civil charges against Franklin Raines, Fannie's former CEO, and two other former executives seeking $115 million in restitution of ill-gotten pay and another $100 million in fines for six years' worth of proven financial misrepresentations at Fannie. It's revealing of Mr. Raines's view of Ofheo's proper role that he and his legal team believe that trying to investigate and penalize Fannie and Freddie's misdeeds is a "conflict of interest" for the Ofheo director. No wonder Fan and Fred got away with accounting fraud for so long.

Says it all about another of Clinton's government thieves. Thanks for the ping.