The corruption of Fannie Mae & Franklin Raines
How Fannie Mae functions
Fannie Mae is a Government Sponsored Entity (GSE). In 2004 under the leadership of Raines that meant that if Fannie was making money it payed it's executives huge salaries and bonuses and then also swept millions into the pockets of our congress men and women. If Fannie looses money then the congress passes on those losses and shoves them right up the tax payers asses. Because Fannie is a GSE it is exempt from state and federal taxes, has lower capital requirements, and borrows at rates well below those paid by private companies. This is why it has a practical monopoly in the housing finance sector.Raines commits fraud at Fannie Mae
In 2004 the Office of Federal Housing Enterprise Oversight (Ofheo) issued a report finding that the government-sponsored entity Fannie Mae had engaged in Enron-like accounting machinations that allowed Fannie to overstate its earnings. By overstating earnings company executives like Clinton administration deputy attorney general Jamie Gorelick and Carter administration assistant director for domestic policy Franklin Raines got huge bonuses.Franklin Raines co-founds a corporate governance and ethics group
In 2004 Franklin Raines co-founds a corporate ethics group. Holly shit LMFAO .... this guy and ethics don't belong in the same sentence never mind any kind of group. Can you even imaging the gaul of this hypocrite!! Living a life with no hint of ethical behavior and forming a group to ensure other corporations have it. The institute was set up in January 2004 to promote corporate ethics programs after prominent scandals such as those at Enron Corp. and WorldCom Inc. What a joke!Franklin Raines buys the technology rights to CCX trading
Can I ask you something ... What does a guy who's supposed to be running the biggest mortgage company in the world know about carbon trading ?? Why would he be interested in it ?? The answer is in this story from Forbes Here is their quote about his involvement in CCX:"The actual operating system for CCX trading was provided by deposed former head of Fannie Mae Franklin Raines, who had purchased the technology rights. Raines had become an expert in bundling bad subprime mortgages, and the technology was ideal for bundling worthless air credits." This is the next big corruption machine that Raines and all his buddies are involved in.
A summary of the corrupt life of Franklin Raines
Let's do a quick recap of this prick Franklin Raines- Ran Fannie Mae for 5 years
- Cooked the books so that he gained over $90 Million in bonuses
- OFHEO acts on a tip and catches the fraud
- December 2004 - The board of Fannie ousts him (he was 55).
- When he left he negotiated a deal netting him a $114,000 a month pension!
- March 2005 - He is removed from the corporate ethics group he founded.
- Eventually forced to claw back $50 Million of his bonus .. WTF ... why didn't he go to jail ????
- Provided the operating system for CCX (I'll tell you about this later and it'll piss you off even more)
- Here is a video showing him at the end
How Franklin Raines and Fannie Mae affects you
So the net is this corrupt bastard walks away from fraud (unlike the Enron guys, one of which is in jail and the other killed himself) and retires after just 5 years with a $114,000 a month pension after being kicked out his job. What is wrong with us just sitting by and taking this bullshit. He needs to be back in court and prosecuted to the full extent for his crimes not living high on the hog on your tax dollars!Fannie was a big part of this housing crisis by writing loans that could not be paid so Raines could get his bonus and congress could keep stealing money from it. Both parties participate in this corrupt practice of taking so called profit dollars from Fannie but no one has taken money at a faster rate than Barack Obama. If you're still an Obama fan and that fact pissed you off ... just look it up for yourself. Fannie Mae is still being bailed out by this administration to the tune of billions of dollars ... your tax dollars. Fannie bailout figures
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