Wednesday, September 24, 2008

FBI Investigating Potential Fraud by Fannie Mae, Freddie Mac, Lehman, AIG.

FBI Investigating Potential Fraud by Fannie Mae, Freddie Mac, Lehman, AIG.

Wasn't this supposed to happen back in 2004 when the original, Clinton-era crimes were exposed (Washington Post: Report Slams Fannie Mae)?
...Though it didn't quantify the effect of what it called pervasive misapplication of accounting rules on the company's books, the report by the Office of Federal Housing Enterprise Oversight cited one instance in 1998 where the company inappropriately deferred $200 million of estimated expenses, which enabled management to receive full annual bonuses. Had Fannie recorded the expenses in 1998, no bonus would have been paid, the report said.

Management in the late nineties included Clinton operatives Franklin Raines, Jamie Gorelick and Jim Johnson. Otherwise known as Barack Obama's economic advisory team. These executives of Fannie Mae and Freddie Mac racked in nearly $200 million in compensation in only six years. And taxpayers are left holding bag for these Democrats who got filthy rich by cheating, and fixing the books, basically putting off the collapse for years.

According to the Washington Post, Raines and Johnson are advising Obama:

The Washington Post, 7/16/08: “In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.”

The Washington Post, 8/28/08: “In the current crisis, their biggest backers have been Democrats such as Senate Banking Committee Chairman Christopher J. Dodd (Conn.) and House Financial Services Committee Chairman Barney Frank (Mass.). Two members of Mr. Obama’s political circle, James A. Johnson and Franklin D. Raines, are former chief executives of Fannie Mae.“


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