Posted on 10/03/2008 2:05:12 PM PDT by The_Media_never_lie
I cannot source this, but I heard the other day that Ms. Gorelick had worked for Fannie may at a salary of a little over $500,000 and left with $26,000,000 in bonuses. The bio on her website says she was Vice Chair of Fannie Mae from 1997 to 2003. She is a Harvard elitist (see link below).
Apparently she did a horrible job and left with a 26 million dollar bonus. To me, something just doesn't look right here. I think there should be a thorough investigation to see if any laws were broken and if she (and Franklin Raines, $700k salary, $50 million bonuses) were not looting the agency. I do not trust the Republicans to investigate this, for they have their buddies on the take and would certainly whitewash this larceny.
If a Harvard education produces some one who cannot manage a corporation better than this, is a Harvard education overrated?
I am livid about this woman's ability to loot and then escape all blame. Does anyone else think something is fishy here?
What Raines, Johnson and Gorelick did with Fannie makes the the Enron boys look like shoplifters at the 7-11. Those boys were put in jail, their assets confiscated and their lives ruined. Barney Frank, Chris Dodd, and the Fannie Gang should suffer the same fate.
Are you kidding??? This is downright criminal what Gorelick and ilk did with Fannie and Freddie! The hypocrite Dems blew a gasket over Enron and let this slide? Why isn't the DOJ or FBI investigating or Congress calling for an inquiry? These rotten Democrats must be held accountable!
These people have so much audacity it is unbelievable! They have taken projection to a whole new level. Has the education system been so poor so long now, that no one is smart enough to see through all this?
Yet the Republicans have the ammunition, and won’t use it. Why, oh why?
I wish so, but never will happen. The RATS are in control and they have shown definite communist tendencies. For years they have controlled investigations and justice is a joke. We are is deep trouble.
Gorelick needs to be investigated as much as anyone involved in this financial fiasco.
I believe that posts at FANNIE MAE and perhaps Freddie Mac were USED as payoffs for people who performed well for the powerful democrat machine.
Gorelick-the DOJ employee under Reno who set up the wall of silence between our CIA and FBI (and by doing this could very well have cleared the path for the terrorist plans to ram our twin towers, etc) performed like a clinton stooge or sycophant when SHE was ASKED to sit on, of all things THE 911 COMMISSION!!!!!!!!!!!!!
ARRRRRRRRRRRRRRRRRRRRRRRGH!!
Now why,,,,,,in heavens name......would this woman have been asked to sit on that commission? The only REASON is because she served to cover for the clinton adm. and halt all avenues of research into their failure to deal with terrorism...especially considering her wall ( built so that bill clinton and his yucks could grab foreign money without reproach! No WONDER clinton REFUSED to meet with his CIA director!
Holy shit, I knew when Bawhney melted down on The Factor that their spider’s web wouldn’t hold. Keep digging!
Federal regulator Office of Federal Housing Enterprise Oversight 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
RAINING MONEY - Franklin Raines fired for cooking the books---walks away w/ $90 million tax dollars
Franklin Raines reigned for 5 years following Clinton's appointing him as CEO of Fannie Mae, the US' quasi-governmental mortgage house, has now been ousted.
There are several ongoing investigations of Fannie Mae's operations and accounting practices covering the last 5 years in order to determine when accounting irregularities started and the magnitude of the financial shortfalls. Current estimates indicate that there was a $9 billion misstatement of earnings and accounting irregularities between 2000-2004.
(POSTER'S NOTE: Can you say offshore wire transfer?)
Former chief executive Franklin Raines received more than $40 million in bonuses and other pay as a result of falsely inflated earnings at the US' largest mortgage finance company. This is according to a supplement of a lawsuit filed by Ohio Attorney General Jim Petro. Fannie Mae added "tens of millions of false revenue" to meet "Raines' 1999 publicly announced goal to double" earnings over the next five years, Petro's November 23, US District Court in Washington alleges. The filing alleges that, "Raines personally profited by over $40 million by this false earnings history.
Update -- 2/22/2006: Former Senator Warren Rudman's team of investigators and auditors selected from his law firm, Paul, Weiss, Rifkind, Wharton & Garrison, and from Huron Consulting Group presented their 600-page report calling Fannie Mae's accounting systems "grossly inadequate." It is based on a review of millions of documents.
The report found that accounting obfuscations were intended to increase stock valuations, thus increasing executive bonuses.
Raines was one of the most influential and politically savvy figures in Washington is identified by the Rudman investigation as not directly knowing that Fannie Mae's accounting practices violated rules. The report does state, "We did find, however, that Raines contributed to a culture that improperly stressed stable earnings growth and that... he was ultimately responsible for the failures that occurred on his watch".
Raines will continue to live well being supported by Fannie Mae's shareholders. Some relevant facts include:
-- Raines and his wife will be paid $114,393 a month as long as they live.
-- Stock options: Raines holds vested stock options worth roughly $5.7 million.
-- Stock bonuses: Raines was granted awards, payable in stock, for reaching performance goals. Under the program, he got 69,577 shares... half of what Fannie determined he should receive in January. At Monday's close, the shares are worth $4.9 million. It is unclear if he will receive the rest.
-- Deferred pay: For tax planning while employed by the company, Raines was allowed to put off the receipt of payment. These deferred past payments total $8.7 million
Future salary: Although Fannie Mae says Raines' retirement was effective December 21, 2004, he is seeking to have it effective as of June 22, 2005, and thereby receive $600,000 more in pay.
Mr. Raines followed a well-worn path in the United States during the later half of the 20th century. His humble beginnings were in Seattle. He won a scholarship to Harvard and was a Rhodes Scholar at Oxford. He worked on Wall Street for over a decade in the prestigious firm Lazard Freres. He was a member of President Clinton’s cabinet and director of his Office of Management and Budget. In 1999, Clinton selected him for the position of Fannie Mae CEO.
Following revelations of the financial scandal, Mr. Raines took early retirement from Fannie Mae so that he could collect a compensation package including $1 million per year for life and $11 million in vested stock. In 2003 Mr. Raines was paid $20 million in salary and bonus.
Fannie Mae is facing criminal investigations by the Justice Department, operational investigations by the SEC, and various Congressional investigations. There are questions regarding earnings statements being incorrectly inflated. In 2003, if derivative and other losses had been included, no bonuses would have been paid to top executives. However, deferral of the losses allowed declared earnings to reach a level which triggered maximum executive bonuses.
It is a far stretch to imagine that Franklin Raines actually was capable of satisfying the requirements of the positions he held from Harvard to Director of the White House Office of Management and Budget. If he had been competent enough to hold those positions, how could he have been Fannie Mae's CEO for 5 years and allowed, not known about, or not understood that $9,000,000,000 was being mishandled.
===============================================
9/26/08 UPDATE: LA grand jury probing Countrywide VIP loans
LAtimesblogs via WSJ ^ | September 25, 2008 | Peter Viles
FR Posted on 09/26/2008 5:50:44 AM PDT by stockpirate
The Wall Street Journal reports that a federal grand jury in Los Angeles is investigating the so-called "Friends of Angelo" loan program at Countrywide Financial, under which influential borrowers received preferential terms on home loans. The reported borrowers under the program have included U.S. Sen. Chris Dodd (D-Conn.), former Fannie Mae Chief Executive Franklin Raines, and California state appeals court judge Richard Aldrich. (Excerpt) Read more at latimesblogs.latimes.com ...
You might be interested in http://www.freerepublic.com/focus/f-news/1120934/posts?page=1
EXCERPT...Ten years ago.......the typical conforming mortgage required a down payment of 10 to 20 percent, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3 to 5 percent down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide.
Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...
In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early. Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bush’s Minority Homeownership Initiative).
After four of the strongest years in housing and mortgage finance history, we’ve already surpassed the top-line goals of this commitment. But our work is far from complete.
So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle America’s toughest housing challenges. Our new commitment has three main goals.
First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.
Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.
Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.
It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years.
And we have increased our financing of mortgages to African Americans by over 400 percent and to Hispanic Americans by 470 percent in the past ten years, compared with a 205 percent increase in overall financing.
Our Expanded American Dream Commitment will help us do even more.
111 The Timeline Project / Link List of Bailout History
http://www.freerepublic.com/focus/f-bloggers/2093845/posts
The gift that keeps on giving—first 9/11 and the “Wall of Separation”, and then Fannie Mae.
This woman is the female counterpart to the Al Pacino “character” in the Devil’s Advocate.
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.