OBAMA ADVISOR FRANKLIN RAINES IGNORED FANNIE MAE ACCOUNTING WARNINGS AS EARLY AS 2002

MSNBC.COM ^ | 10/6/2004 | AP

[johncocktoasten]

WASHINGTON - The former Fannie Mae accountant who raised questions about the mortgage giant’s bookkeeping said Wednesday that he took his concerns directly to chief executive Franklin Raines in 2002 and asked him to investigate.

The disclosure by Roger Barnes, who left Fannie Mae last November, came as Raines and chief financial officer Timothy Howard defended the company’s accounting and told Congress that regulators’ allegations of earnings manipulation represent an interpretation of complex rules.

[TheThinker]

What a list of corrupt advisors Obama is compiling! I’d like to see that list in its entirety posted on FR just for reference for the rest of the country.

[TheThinker]

That demonstrates a pretty serious misunderstanding of the requirements of Sarbanes-Oxley.

More like a total disregard because it holds executives accountable.

[Eva]

My guess is that Raines has been working with Obama since before Obama moved into national politics. This whole expansion of the credit market into risky loans is a result of the pressure from community activist groups, like ACORN.

Obama has been a BIG proponent of risky real estate loans for many, many years. This move by his campaign to call everything a racist attack is a warning not to hit Obama for his ties to the risky mortgage market because they will claim this is a racist attack.

[plain talk]

“involve highly detailed issues that I would not normally focus on in my role as CEO,” Raines said.

Tell that to the former Enron CEOs

[rockthecasbah]

bookmark

[Liz]

Top Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008

Name Office / State / Total

1. Dodd, Sen Christopher J D-CT $133,900
2. Kerry, Sen John D-MA $111,000
3. Obama, Sen Barack D-IL $105,849
4. Clinton, Sen Hillary D-NY $75,550
5. Kanjorski, Cong Paul E D-PA $65,500

NOTE: Kanjorsi is being challenged by Lou Barletta-—Barletta, an anti-illegal champion, is way ahead in the newest polls.

[Liz]

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

[Liz]

December 28, 2004
RAINES' FAREWELL: $26M+
By PAUL THARP NY POST

Although Fannie Mae chief Franklin Raines (Clinton appointee) 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 under a cloud of suspicion that the execs undermined the financial soundness of Fannie Mae, creating losses of up to $9 billion.

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 Raines 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.

SOURCE http://www.nypost.com/business/37312.htm

[gotribe]

How many of these people have ties to the obama campaign? Fannie Mae reported paying the following executive bonuses in 1998: chairman and chief executive James A. Johnson received $1.932 million; Franklin D. Raines , chairman-designate, received $1.11 million; Chief Operating Officer Lawrence M. Small received $1.108 million; Vice Chairman Jamie S. Gorelick received $779,625; Chief Financial Officer J. Timothy Howard received $493,750; and Robert J. Levin , an executive vice president, received $493,750.

[waus]

IBD-—The Real Culprits In This Meltdown

http://www.ibdeditorials.com/IBDArticles.aspx?id=306370789279709

[Flamenco Lady]

I just ran across a video titled: Explosive CEO calling Obama, Dems “Family” of Fannie Mae at the following website:

http://acanadianguy.blogspot.com/

Hope you all enjoy this!

[CPT Clay]

Franklin Raines belongs in jail.

Where is the Bush justice Department!!!!!!!!!

Disgorge

[VRWCmember]

Depending on how big an adviser he is, I would agree with not mentioning that. If he is a big one though, the media should mention it.

He's only the campaign's top economic advisor.

[rwfromkansas]

Then it should be an issue.

[rlmorel]

Thanks for posting. I read your posts whenever you have something to say...it is usually worthwhile.

This is gold for me...:)

[Ditto]

I doubt that, not if AP and MSNBC picked it up.

Check the date of the story --- it's four years old --- before MSNBC and the others were 'Obamaized.'

Actually, you should copy this story and archive it because my bet is that MSNBC will send it down the memory hole once they realize its still on their server.

[Ulysse]

YEAH but McCAIN can and must hammer this by ads,in hese next statements and during the debates!
He can win by KO as OUSSBAMA is counting on that crisis to win the race...

[patriotspride]

“Well, let’s see how much our friend (guffaw), Bill O’Reilly, will ‘investigate’ this....as well as the Iraq situation with Obama....”

I think Neil Cavuto may have a few extra words for Bill on this topic, as he is one of the few who takes him on, and exposes his brushoffs for what they are.

He doesn’t know or care what he’s talking about, as long as it makes him look good.

Example: Watch his email segment it’s either a puff piece praising him, or his lecturing the emailer on why THEY are wrong............

[patriotspride]

” Raines and Obama both disprove the Peter Principle. Both have been promoted more than one level above their incompetence level.”

Well stated...............

[Osage Orange]

Please...........you don't think the guy has "any" blame?

$90 million later...for 6-7 yrs "work"...!!!

Get out of here...!!