Three Men who helped bring down Wall Street

[ndn]

Here is a quick look into three former Fannie Mae executives who have helped bring down Wall Street.

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae when auditing discovered severe irregularaties 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'tproper, issued a statement 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 the company 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. 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 he received in bonuses based on the miss-stated Fannie Mae profits.

Tim Howard was the Chief Financial Officer of Fannie Mae. Howard was a strong internal Proponent of using accounting strategies that would insure a "stable pattern of earnings at Fannie Mae" In everyday English, he was cooking the books. The Government investigation determined that,Chief Financial Officer , Howard failed to provide adequate oversight to key control and reporting functios within Fannie Mae.
On June 16,2006 Rep Richard Baker Rep,La, asked the Justice Dept. to investigate his allegations that two former Fannie Mae executives lied to Congress in Oct. 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.

Howards golden parachute was estimated at $20 Million.

Jim Johnson, 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. Investigators found Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation from the public, reporting it was between $6 and 7 million 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.

Johnsons golden parachute was estimated at $28 million.

WHERE ARE THEY NOW:



Franklin Raines? Raines works for the Obama Campaign as Chief Economics Advisor.

Tim Howard? Howard is also an economics advisor to Obama.

Jim Johnson? Johnson was hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee.

If Obama plans on cleaning up the mess- His ADVISORS HAVE THE EXPERTISE- THEY MADE THE MESS IN THE FIRST PLACE.

[Drewp]

Key word in the title of your post is "helped," though I'm not even sure that's completely accurate. Everyone is to blame, from the consumers, to the lendors, to the government's failure to regulate. I'm sick of the blame game, but I think the lendors and the classic conservative view of de-regulation holds the largest amount of blame if you really want to play. Time to stop bickering and get on with fixing it. Though I'm afraid that no one really knows for sure how to do it.

[kevinb]

go fishing!!!

Please,go fishing and write a report

[Marc Martyn]

And on the other side...........
http://thinkprogress.org/2008/05/28/mcc ... eign-bank/

[Rollin with Rolland]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

[Marc Martyn]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

Your alternative?

[VHMLLC]

And on the other side...........
http://thinkprogress.org/2008/05/28/mcc ... eign-bank/

point / counter point





:viking:

[kevinb]

I wouldn't put a whole lot of energy into this...considering the source.
I don't have much patience for internet trolls. Oh look what I got in my e-mail..copy/paste and I can claim it as my own.Woo-hoo!
I don't care if your right or left. Nothing wrong with a friendly political debate but these threads can get out of hand fast.
I'm tired of watching fellow members argue with each other while the creator of the thread drops these bombs off every 2 months and sits quietly. I probably wouldn't mind so much if you (ndn) actually wrote a fishing report from time to time or would occasionally join in other forums. After all,this is a fishing website.

[kutthroatkilla]

Well, leveraging played a large role!! Here's my analysis: Some mortgages given to bad credit risks must be foreclosed. Home price declines cause other buyers to walk away from their mortgages. Home price declines mean that foreclosed properties must be sold for less than the outstanding mortgage. Nobody wants to buy mortgage-backed securities. The market for MBS completely freezes up. Since MBS are not trading, nobody knows how much they are worth, and the banks can’t get rid of them. Since nobody knows how much the MBS are worth, nobody knows how bad the banks’ balance sheets are. Payment defaults by mortgages and mortgage-backed securities cause losses at banks and other holders of these instruments. MBS defaults cause losses for issuers of credit-default swaps. The highly-leveraged balance sheets of financial firms turns these losses into big problems: some firms are insufficiently capitalized (i.e., not enough equity). Financial firms must try to raise new equity and de-leverage their balance sheets...

Everyone de-leveraging at once causes a major contraction in the liquidity of the financial system. Everyone is frantically de-leveraging and raising capital, some giant financial institutions have gone under, and some financial markets are frozen up, so every one is scared!!Balance sheets are pretty opaque, so nobody knows anyone else’s remaining exposure to MBS or CDS, so everyone is reluctant to invest in or lend to financial companies. Financial companies have a very difficult time raising money. As their bet comes due and must be rolled overeither they cannot borrow, or it is very expensive to do so (i.e. pay high interest rates), and thus everything keeps getting worse.

Ahh, tis so good to be young! One company I follow, STLD, Steel Dynamics, is trading well below its actual valuation in terms of technicals. If you have time and are unattending a rod...take a look at the commodity sector and Steel Dynamics. STLD is a long-term buy and hold, and around $13-$15 per share, I might get in on this sucker. It's value stock. There's always opportunity where there was/is dispair...it's all how you preceive it...Best wishes to all as we weather this together as one big family! The name calling and blaming Democrats for that, or Republicans for this, gets us nowhere and is counterproductive. Let's get out fishing, have some brews, talk about our winning stock picks for the last few weeks and enjoy nature! The blame game is getting old.

As far as working this out...here's how recovery will need to go (at least this would be my proposal):

1. Housing prices must stabilize!!
2. As long as the housing market keeps getting worse, financials will be under heavy pressure!!
3. Confidence in the viability of financial companies must return..otherwise they cannot roll over their debt, and they will
continue to fail (fear breeds failure breeds more fear)...
4, Deleveraging must run its course
5. Financial sector must get smaller and better capitalized

[A9]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

Your alternative?

I'm still considering voting for Ron Paul....Just to say I didn't vote for either of those two....

[Marc Martyn]

That at this point in the process would be essentially a non existing vote. If you don't like either of them, you should pick the one you dislike the least.

[The Quadfather]

I wouldn't put a whole lot of energy into this...considering the source.
I don't have much patience for internet trolls. Oh look what I got in my e-mail..copy/paste and I can claim it as my own.Woo-hoo!
I don't care if your right or left. Nothing wrong with a friendly political debate but these threads can get out of hand fast.
I'm tired of watching fellow members argue with each other while the creator of the thread drops these bombs off every 2 months and sits quietly. I probably wouldn't mind so much if you (ndn) actually wrote a fishing report from time to time or would occasionally join in other forums. After all,this is a fishing website.

I have to agree with Kevinb.... and I realize that I'm fueling the fire by even posting. However I always do wonder about people who drop these fire bombs on the "Off-topic" section and sit back as people argue and harsh out on each other.

If you look at the last ten post section from the post originator,(found on the profile page) he has only one post about fishing, and the rest are drop in political bombs. OK, it's an off topic forum, but it would be nice to once in awhile have something a little less contraversial, (sp?--OK, my spelling can be bad)#-o

[Rollin with Rolland]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

Your alternative?

Well marc, I don't have an alternative yet. I truly believe this country was built by common people fighting for what they believe in. I'm sure you agree, and you probably helped along the way....


I just don't believe in the mega money filled two party electoral process. I would like to see more candidates with a chance, maybe five or so. In my idealist world, the president of the United States should be who the people want, not who we don't want (lesser of two evils argument). But alas, I realize this will probably never happen. But I WILL vote, and for the person I think will do the job best, even if they have no chance to win. Just my thoughts. I just hope whoever makes it does a good job.....

[fishnislife]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

Your alternative?

Defect to Canada.





fishnislife

[A9]

That at this point in the process would be essentially a non existing vote. If you don't like either of them, you should pick the one you dislike the least.

It could be an important vote.
http://www.voanews.com/english/archive/ ... -voa20.cfm

You are right, obviously voting for someone other then McCain or Obama would have about zero impact, but I don't like either candidates, not sure which one I like the more, and I don't even know if I wanna vote for either of em...

[Rollin with Rolland]

and the third side,

Either way, Obama/Biden or McCain/Palin..........we're screwed!!. I feel bad for all the grandkids....

Your alternative?

Defect to Canada.

I could think of worse things fishnislife. Let's see.....British Columbia.....arguably one of the best sport fisheries in the world (yes, even better than WA ). I could handle that. :jocolor:

[VHMLLC]

Your alternative?

Defect to Canada.

I could think of worse things fishnislife. Let's see.....British Columbia.....arguably one of the best sport fisheries in the world (yes, even better than WA ). I could handle that. :jocolor:

im thinking the swiss alps look awsome.






:viking: