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Fannie Mae Cooking the Books

Posted by rightwinger on September 16, 2008

You thought Enron was bad?  Just wait until you read about Fannie Mae.  They were cooking the books too to the tune of $90 million going to Franklin Raines the leader of Fannie Mae.  Franklin Raines has informally been advising the Obama Campaign on Housing and Mortgage Issues.  America, do you really want more of this?  Apparently Obama received money from Fannie Mae.

Fannie Mae is the biggest single source of money for mortgages in the United States. From 1998 to 2004, the years covered by the OFHEO investigation, it was headed by former Clinton budget director Franklin Raines, whose top management team included former Clinton Justice Department official Jamie Gorelick, sometimes mentioned as a future attorney general in a Democratic administration. During that period, the report says, Raines and his team grossly overstated Fannie Mae’s earnings — to the tune of $10.6 billion — for the purpose of paying themselves big bonuses. “By deliberately and intentionally manipulating accounting to hit earnings targets,” the report says, “senior management maximized the bonuses and other executive compensation they received, at the expense of shareholders.”

Even though his salary never topped $1 million, Raines’s total compensation shot from $6.48 million in 1998 to $8.52 million in 1999, to $13.89 million in 2000, to $18.86 million in 2001, to $18.20 million in 2002, to $24.15 million in 2003, all on the strength of EPS bonuses. Investigators found that of the $90.12 million Raines was paid in that six-year period, more than $52 million came from EPS bonuses.

In 1999, Raines announced a new goal to double Fannie Mae’s EPS in five years, from $3.23 per share to $6.46. It was an audacious goal, and reaching it, according to OFHEO, became Fannie Mae’s reason for existence: “$6.46, the EPS goal, became the corporate mantra — everything else was secondary to hitting that target.”

Gorelick’s situation was similar. OFHEO found that she took home $26.46 million in the period from 1998 to 2002 (she left in that year, so she wasn’t there for the entire period under investigation). Of that figure, nearly $15 million came from EPS bonuses.

But the bill has faced a lot of opposition, mostly from Democrats.

Read the article for yourself.

Read the article for yourself.

Read the article for yourself.

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3 Responses to “Fannie Mae Cooking the Books”

  1. […] Ken Lay is good for old Franklin Raines who personally made $90 million dollars in six years from Fannie Mae cooking the books.   I have written all of my represntatives calling for an investigation and hearing on Franklin […]

  2. […] Barack Obama says let’s not find out the root cause, let’s put out the fire.  Yes Obama, you don’t want the American people to know that your buddy Franklin Raines made $90….  You don’t want Americans to know you were number 2 on the list for getting payoffs from […]

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