Posted on 09/08/2008 12:13:06 AM PDT by nickcarraway
When President George W. Bush nominated Henry Paulson to serve as Treasury Secretary, Republicans raised a red flag that Paulson, who, along with his wife, has strong ties to the Democrat party, would not be an honest broker with Republicans.
That seems to have been borne out, with sources inside of Treasury reporting that Paulson briefed Sen. Barack Obama and his campaign advisers on the Fannie Mae and Freddie Mac bailout plan before offering such a briefing to the McCain campaign.
In fact, the McCain campaign had sought a similar briefing several days ago as word spread that a bailout plan was to be unveiled and had been turned down by Paulson's senior staff.
The next question is: Why was the Obama campaign so keen on getting advanced word about the bailout?
"They have a huge problem with the mortgage and housing market story, and everyone is missing it," says a Republican political media consultant with ties to the Obama campaign due to the bipartisan nature of the firm he does work with.
"You look at Obama's economic advisers, the guys he has counted on from day one and who have raised him a ton -- and I mean a ton -- of money: Franklin Raines and Jim Johnson, both of them are waist to neck deep in the mortgage debacle."
Both Raines and Johnson have served as CEO of Fannie Mae, with Raines taking over from Johnson. Both are key political and economic advisers to Obama.
"How can Obama go out with a straight face and saw it was Republicans who made this mess, when it is his key advisers who ran the agencies that made the big mess what it is?" says a Democrat House member who supported Sen. Hillary Rodham Clinton. "It's his people who are responsible for what may well be the single largest government bailout in history. And every single one of them made millions off the collapse that are lining Obama's campaign coffers. If the McCain campaign let's this one go, they deserve to lose."
It isn't just Fannie Mae where Obama has a problem. Another close political adviser, in fact the one man responsible for rallying support for Obama early on among Congressional Democrats, is Rep. Rahm Emanuel, who served on the Board of Directors for Freddie Mac after leaving the Clinton White House. According to Freddie Mac insiders, Emanuel during his time on the board opposed every reform proposed by the Bush Administration that would have impacted Freddie and Fannie Mae.
Emanuel claimed to be neutral in the primary race between the wife of his old boss and his longtime Chicago acquaintance, Obama. But the chairman of the House Democratic Caucus, who would be first in line for the vacated Senate seat of Obama should he win the presidency, quickly dumped Clinton when it was clear Obama had a head of steam for the nomination.
"We ought to be able to -- rightly -- hang the Fannie and Freddie scandal around the neck of Obama, if they can get out in front," says a House Republican. "Middle-class folks' mortgages are probably safe, but the American taxpayer will also be paying for this scandal for years to come."
Obama is next to every scandal we hear of, anymore.
Great article -- two of Obama's closest advisors are up to their necks, no, over their heads in slime from the mortgage debacle..... and Rahm Emmanuel too, that's a three-fer!! Take the corrupt scumbags down in a mudslide of scandal - they are scum.
He can blame it all on Trig.
He can blame it all on Trig.
Believe me, they will try.
Oh, I believe it. First he put himself up against the opposing presidential nominee, then he switched to the VP nominee, then her baby. He’s trying to find someone his own size to pick on, but he can’t find someone that small.
for later read
Don’t forget Gorelick. She was also a big mucketymuck at Fannie before she was tapped to obstruct the 9/11 investigation.
What is she up to now? In the bag for the Dems, I’m sure.
I don’t know, I’m looking under that bus and it doesn’t look like there’s enough room for these guys under there!
CONGRESS IN BONUS HUNT AT FANNIE MAE
By RICHARD WILNER
January 6, 2005
A powerful Washington lawmaker wants Franklin Raines and other former and current Fannie Mae executives to fork over the more than $18 million in bonuses they got over three years if fraudulently inflated profits led to the payout. Raines and Timothy Howard were given the boot four days before Christmas after the Securities and Exchange Commission ruled the company wrongly applied some accounting rules that inflated profits from 2001-2004. The mistakes may lead to a $9 billion restatement of profits over that period. The bonuses — including $10.6 million to Raines — were tied to Fannie Mae hitting certain profit targets.
Also, over three years Daniel Mudd, the interim CEO and former COO under ex-CEO Raines, received bonuses of $3.28 million, while Howard, the ex-CFO, got $2.65 million.
The Department of Justice is investigating whether Raines, Howard and others knowingly misapplied the accounting rules in order to get the huge bonuses. Lawyers for Raines and Howard did not return calls.
http://www.nypost.com/business/37848.htm
Jamie Gorelick received $779,625 in improper bonus from Fannie Mae
OFHEO | September 22, 2004 | Office of Federal Housing Enterprise Oversight
FR Posted on 09/23/2004 3:31:49 PM PDT by Dems_R_Losers
Federal regulator OFHEO yesterday released a damning report on accounting irregularities at mortgage finance giant Fannie Mae. One critical finding was that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses.
1998 Salary and Bonus of Senior Fannie Mae Executives
Officer Title Salary AIP Award/Bonus
James A. Johnson Chairman and CEO $966,000 $1,932,000
Franklin D. Raines Chairman and CEO Designate $526,154 $1,109,589
Lawrence M. Small President and COO $783,839 $1,108,259
Jamie Gorelick Vice-Chairman $567,000 $779,625
J. Timothy Howard EVP and CFO $395,000 $493,750
Robert J. Levin EVP, Housing and Comm. Develop. $395,000 $493,750
December 28, 2004
RAINES’ FAREWELL: $26M+
By PAUL THARP NY POST
Although Fannie Mae chief Franklin Raines was fired for bungling its books, he’ll get a $26 million parachute — not counting a monthly pension of $116,300 for life. The 55-year-old Washington, D.C. insider and his CFO J. Timothy Howard left their jobs last week under a cloud of suspicion that the execs undermined the financial soundness of Fannie Mae, creating losses of up to $9 billion.
Regulators overseeing Fannie Mae urged it not to pay any benefits to either executive until reviews are made of their contracts, filings said yesterday. Fannie Mae’s filings federal Raines owns options giving him $5.8 million in net profit after redeeming them, plus another $8.7 million in deferred compensation for his six years at the helm.
Raines has already collected $4.87 million in special performance shares this year and also keeps $5 million of paid-up life insurance. He and his spouse get free medical and dental benefits for life, worth over $1 million.
Last year, Raines earned $20 million in salary, bonuses and stock awards. The Securities and Exchange Commission said he broke accounting rules by playing with risky derivatives. After he was fired, Raines told the board that he’s entitled to get paychecks until next June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also says he’s entitled to disputed options with a gross value of about $5.6 million.
To keep Raines happy within philanthropic circles, Fannie Mae will match his charitable contributions by $10,000 a year.
Raines’ CFO Howard gets a parachute valued at more than $13.1 million — not including a monthly pension of $36,071 for life. Howard gets free medical and dental coverage for himself and family for life, and as well as the matching $10,000 annual perk in making charitable contributions.
http://www.nypost.com/business/37312.htm
Thanks for the pings. Another rat run pseudo business goes down into the liberal cess pool for liberal failures.
thanks nick and CodeToad.
U.S. seizes Fannie and Freddie
CNN | 9/7/2008 | David Ellis
Posted on 09/07/2008 9:02:41 AM PDT by CodeToad
http://www.freerepublic.com/focus/f-news/2076709/posts
re: Gorelick..... ah, yes, the party of corruption strikes again!! Raines, Johnson, and Gorelick...... 3 leading Demagogues who gorged on Fannie Mae funds and then scurried away as the catastrophe they set in motion built to its ultimate conclusion.
Gorelick’s still more of a Clintonista, I think, so the Obama connection is most important for Raines and Johnson. But we most certainly should not lose sight of Gorelick, of 9/11 obstruction infamy and “the wall”...... cover-up of Clintonista mendacity and incompetence, etc.
I won't really have any respect for the Bush administration until they throw these people in jail; publishing for all to see and know the facts of the Democrats' thievery and treason. Especially now that the Democrats are making noises about suing Bush. So much for the solicitousness of the Bush administration concerning the trashing of the White House Offices by the Clintoonites, (for one small example of what makes it all seem like there is just one party). This is why Sarah Palin inspires so many Americans; for her speaking out against government corruption
Am I right, or am I right?
I don't want to pay for this, does anyone else?
Don’t you love the Hillary-ite spurring this on. Send this one up the flag pole. Tie it to an overall theme that Obama did nothing to fight corruption while Palin made it her calling card. And have Palin do the talking. Make him respond to her.
Who is the REAL Barack Obama?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.