SEC Sues Former Fannie, Freddie Executives

Wall Street Journal ^ | DECEMBER 16, 2011

[navysealdad]

NEW YORK—The Securities and Exchange Commission sued several former executives of Fannie Mae and Freddie Mac, including their former chief executives, alleging they misrepresented to investors their exposure to subprime mortgage loans.

[Henchster]

Does that mean we will get to see those Clinton cronies Jamie Gorelick and Franklin Raines stripped of their ill-gotten gains?

Sorry, what was I thinking, they're Dems.

[blueunicorn6]

And Barney Frank will be right behind them pumping up their morale.

[iceskater]

Exactly what I was wondering.

[LibertarianLiz]

Until Barney Frank is given similar charges there will be no justice for the American taxpayer. Frank sat on that committee and said, "I'd like to keep rolling the dice with this". Thank you, Barney --- try rolling the dice with your own money.

The politicians who kept covering for Fannie and Freddie, when GW was asking them for more regulations, and the Republicans on the committee were asking for more regulations; those people should also be looked at in a serious fashion.

[iceskater]

Exactly what I was wondering.

[John W]

Richard Syron, the former chief executive officer of Freddie Mac, and Daniel Mudd, ex-CEO of Fannie Mae, Enrico Dallavecchia, who was chief risk officer for Fannie Mae; Thomas Lund, Fannie’s Mae’s former executive vice president; Patricia Cook, Freddie Mac’s former executive vice president; and Donald Bisenius, who was a senior vice president at Freddie Mac were all sued by the regulator.

[tcrlaf]

They are going after Syron and Mudd, the Bush-Era CEO’s, and NOT Democrats Franklin Raines, who pocketed ONE HUNDRED MILLION DOLLARS cooking Fannies books, or Obama Advisor Jamie Gorelick, who pocketed $25 million from the same scam.

IMAGINE THAT, EH?

[sam_paine]

SEC Charges Former Execs Of Fannie, Freddie
SEC Seeking Financial Penalties
Aaron Smith

To hell with WSJ’s member’s only tease.

POSTED: 10:35 am EST December 16, 2011
UPDATED: 10:37 am EST December 16, 2011

NEW YORK (CNNMoney) — The Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac with securities fraud on Friday for misrepresenting their holdings of high-risk mortgage loans.

The SEC is targeting three former executives of Freddie Mac, including chief executive officer Daniel Mudd, chief risk officer Enrico Dallavecchia and executive vice president of single-family mortgage business Thomas Lund.

The agency is also going after three former executives of Fannie Mae: CEO Richard Syron, executive vice president and chief business officer Patricia Cook and executive vice president for the single family guarantee business Donald Bisenius.

The SEC is seeking financial penalties against them, but did not specify an amount.

Mortgage finance giants Freddie Mac and Fannie Mae, which play a central role in the U.S. housing market by keeping the cost of mortgages lower, received the biggest federal bailout of the financial crisis.

In addition, top executives have drawn some $100 million in pay.

Copyright CNN 2011

[org.whodat]

Raines, should have been prosecuted by jorge, he was not, he made a deal with Holders justice department and paid a fine, I am sure part of the deal was no further charges. Do not know about anything done to gorelick.

[devolve]

YOUR CHEATING HEART

[Roccus]

Do not know about anything done to gorelick.

She got appointed to the 9/11 c0mmission.

[sam_paine]

Wednesday, November 16, 2011 5:29 PM EST
How Much Did Previous Fannie and Freddie CEOs Make?
By Moran Zhang

Lawmakers, enraged by the lucrative pay level at Fannie Mae and Freddie Mac, moved Tuesday to slash pay for the companies' employees and suspend bonuses for their top executives. Fannie Mae CEO Michael William and Freddie Mac CEO Charles E. Haldeman Jr. argued Wednesday before a Congressional committee saying pay cuts would harm taxpayers in the long run.

According to a report produced by the House Oversight and Government Reform committee, in 2010, Haldeman received a base salary of $900,000, and took home an additional $2.3 million in bonus pay. He stands to make as much as $6 million in 2011.

Meanwhile, Williams, took home $900,000 in base pay in 2010, along with an additional $2.37 million in performance bonuses. He also may take home as much as $6 million in 2011.

The report also provided a list of compensation packages given to previous Fannie Mae and Freddie Mac CEOs during the past a decade or so. Here is the rundown:


James Johnson (Fannie Mae CEO, 1991-98) earned roughly $100 million in pay over his time at the company.
Franklin Raines (Fannie Mae CEO, 1999-05) earned more than $90 million from 1998 to 2003. Furthermore, the Office of Federal
Housing Enterprise Oversight (OFHEO) revealed in 2006 that some Fannie senior executives (including Raines and Johnson)
manipulated accounting to bolster their pay from 1998 to 2004.
Daniel Mudd (Fannie Mae CEO, 2005-08) earned $12.2 million in base pay and bonuses while heading Fannie.
Leland C. Brendsel (Freddie Mac CEO 1987-03) took home more than $28.4 million from 1993 to 2003.
Richard Syron (Freddie Mac CEO, 2003-08) earned more than $38 million in compensation while he was CEO. Syron collected $19.8 million of this pay in 2007 alone, the year before the enterprise went into conservatorship.

[Wolfie]

Bah, it’s a smokecreen. Not worth getting fired up about one way or another (for example, if you don’t want anyone punished because everyone isn’t punished). They’ll fine these guys some (very) small percentage of their ill gotten gains and that will be that. The sheeple will think something’s been done, and future crooks will know to really pump up the profits so they have a lot left over after they give the Feds their cut via SEC fines.

[Vaquero]

why not indict ole Barney Fag while they are at it...he is the Banking Queen after all, and as implicit as hell.....beside he would love to be the object of ole Bubbas affection in prison....

[lonestar]

Franklin Raines

Maxine Waters is weeping.

[Lurker]

Rahm Emanuel

[6ppc]

Does that mean we will get to see those Clinton cronies Jamie Gorelick and Franklin Raines stripped of their ill-gotten gains?

Not likely, but also don't forget Rahm Immanuel.

[kiryandil]

Ah. I see - NO criminal charges.

Of course, only peasants get criminal charges for fraud...

Obama: "They Did Nothing Illegal, Only Found Loopholes that We Worked to Close."

Obama Explains The Simple Reason Why There Have Been No Criminal Cases Against Wall Streeters

In a television interview this weekend, CBS "60 Minutes" asked President Barack Obama why there haven't been more criminal cases made against Wall Street.

The reason, Obama explained, is they didn't do anything illegal.

"I can tell you, just from 40,000 feet, that some of the most damaging behavior on Wall Street, in some cases, some of the least ethical behavior on Wall Street, wasn't illegal. That's exactly why we had to change the laws. And that's why we put in place the toughest financial reform package since F.D.R. and the Great Depression," Obama told CBS's Steve Kroft.

[cpdiii]

The Department of Justice (note the SEC is part of the Executive branch as is the Department of Justice) has become the Department of The Gestapo.