what do you think of this email i received?
Here, in September, 2008, we are being told that our economy is in a meltdown, the stock market is reeling, politicians are finger-pointing (what’s new?), and we’re being asked to support a “bailout” program that will eventually burden the American taxpayer with over a TRILLION dollars in additional debt, or face a financial armageddon. There is plenty of blame to go around, but the following has to be regarded as an example of one of the worst abuses of power in the financial world, ever. It’s a short read, but it speaks volumes about how power corrupts when no one cares enough to expose it, and demand that it be corrected. If you’re wondering how we got into this mess, you need to read this. Three Men who brought down Wall Street
Kevin Bennett
Here is a quick look into three former Fannie Mae executives who have brought down Wall Street.
Be sure to read the ‘where they are now’ at the end!!
1. Franklin Raines headed the Office of Management and Budget in the Clinton administration, before he became Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae in 2006 when auditing discovered severe irregulaties in Fannie Mae’s accounting activities. At the time of his departure The Wall Street Journal noted,
Raines, who long defended the company’s accounting despite mounting evidence that it wasn’t proper, issued a statement late Tuesday conceding that ‘mistakes were made’ and saying he would assume responsibility as he had earlier promised. News reports indicate the
company was under growing pressure from regulators to shake up its management in the wake of findings that the company’s books ran afoul of generally accepted accounting principles for four years.’
Fannie Mae had to reduce
its surplus by $9 billion. Raines left with a ‘golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear. Read more here: http://housingdoom.com/2006/12/18/fannie-charges/>http://housingdoom.com/2006/12/18/fannie-charges/
The Government noted, ‘The 101 charges reveal how the
individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.’ These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the miss-stated Fannie Mae profits.
2.Tim Howard – Howard was a 22-year veteran of Fannie Mae when he became Chief Financial Officer in 1990 and was named Vice Chairman in 2003.
Howard was considered ‘a stable pattern of earnings’ at Fannie. In everyday English – he was cooking the books. The Government Investigation determined that, ‘Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,’ On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department
to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant’s income statement to achieve management pay
bonuses. Investigations by federal regulators and the company’s board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in
late 2004. Howard’s Golden Parachute was estimated at $20 Million!
3. Jim Johnson – Executive Assistant to Walter Mondale, 1977-81 CEO of Fannie Mae, 1991-98. A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO. A look at the Office of Federal Housing Enterprise Oversight’s May 2006 report on mismanagement and corruption inside Fannie Mae, and you’ll see some interesting things about Johnson.
http://www.ofheo.gov/media/pdf/FNMSPECIALEXAM.PDF
Investigators found that Fannie Mae had
hidden a substantial amount of Johnson’s 1998 compensation from the public, reporting that it was between $6 million and $7million when in fact it was $21 million.’ Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae. Johnson’s Golden Parachute was estimated at $28 Million.
WHERE ARE THEY NOW?
1. FRANKLIN RAINES? Raines works for the Obama
Campaign as Chief Economic Advisor.
2.
TIM HOWARD? Howard is also a Chief Economic Advisor to Obama.
3. JIM JOHNSON? Johnson was hired as a Senior Obama Finance
Advisor and was selected to run Obama’s Vice Presidential Search Committee.
I think you should stop posting it.
Seems like the GOP sent it to ya.
It looks like a typical Republican chain email, thus it is full of lies. I’m sure Snopes will rip it apart.
Actually, that is false….Raines and Obama have both repeatedly stated that he does not work for or give advice to the Obama campaign. Actually, the entire email is false:
way to much to read
Yep, and Obama should share a jail cell with these buddies of his for stealing, lying and cheating the United States of America! But, as always, the Obama followers will overlook these FACTS!
Here’s an email I received, it’s good too:
I am Barr.John Akroma, a Lawyer by profession. I am
the personal attorney to Mr. James Franz, who worked
for the Chevron Oil Exploration Company in Nigeria,
herein after shall be referred to as my client.On the
21st of April 2000, my client, his wife and their
three children were involved in a car accident along
Lagos – Ibadan express road. All occupants of the
vehicle unfortunately lost there lives. Since then I
have made several enquiries to your embassy to locate
any of my clients extended relatives. This has proved
unsuccessful. I came to know about you through an
enquiry I was making in the internet, and i found out
that you have the same Last name with my client, That
is why I have decided to contact you,in order to
assist in repatriating the money and property left
behind by my client before they get confiscated or
declared unserviceable by the bank.Particularly, the
Union Bank where the deceased had an account valued at
about Ten Million Five hundred thousand US Dollars,
has issued me a notice to provide the next of kin or
have the account confisticated within the next 21
official working days.Since i have been unsuccessful
in locating the relatives for over 2 years now I seek
your consent to present you as the next of kin of the
deceased so that the proceeds of this account valued
at US$10.5 Million Dollars can be paid to you and then
you and me can share the money, on the ratio of 60%
for me, and 40% for you. I have all necessary legal
documents that can be used to back up any claim we may
make.All I require is your honest co-operation to
enable us see this business through. I guarantee that
this will be executed under a legitimate arrangement
that will protect you from any breach of the
law.Please get in touch with me by email and send to
me your telephone and fax numbers to enable us discuss
further about the details of this transaction.
Oh, I see they studiously avoided any mention of Phil Gramm.
I wonder why?
I think you need to join McNoMaverick in his staff meeting with all of his lobbyist friends. Especially his campaign manager Davis who only last month stopped receiving checks from fannie mae. And when you do tell them to shove this email full of lies up their a$$.
I’m not reading all that crap! I refuse!
Pure BS, I have seen this same email only with McCain instead of Obama
And while Obama profitted hugely while Americans are losing there homes,some people will turn a blind eye in the name of “Change”I guarantee the changes will not be good if Obama is President.He is a white man preying on the ignorance of the poor and playing the black card to get there.
Sounds like Right Wing smears and lies to me. . . I would delete it and not forward it to anyone.
Obama/Biden ‘08!
A better question what do u think of the email. I would be careful opening e mail or unknown origins many acomputers have crashed and hackers have had a good time. The smear elves are at it again. Obama 08