Thursday, October 9, 2008

Bailout crooks now work for Obama

A buddy of mine, an Obama supporter no less, sent me a note about Fannie Mae executives now with Obama's campaign. (Read the original note, in all its patriotic colors, below the solid line.) I fired back a message and told him it's blatantly false (and a smear campaign); here's hoping you'll do the same when you get this from your Republican friends.

Scott, this is NOT true. Read Snopes:

Hannity falsely claimed Raines is "a chief economic adviser" to Obama

Franklin Raines is not Obama's chief economic adviser. He has, according to Anita Huslin of the Washington Post, "taken calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters." These questions were an effort to better understand the efforts to frame Raines that were undertaken by the Bush administration. The charges were (after ruining Raines' reputation, and forcing him out) dropped. Raines is still seeking legal action to clear his name.

Ditto for Tim Howard and Jim Johnson


pass this one far and wide... a lot of people need to vote with their eyes wide open and discerning of the true facts...

Those who are mad about the bailout and who also favor Obama, had better read this tidbit of info on those crooks with the golden parachute and WHO they work for now.


Here is a quick look into 3 former Fannie Mae executives who have brought 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 irregularities 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. . 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.

Tim Howard - Was the Chief Financial Officer of Fannie Mae. Howard "was a strong internal proponent of using accounting strategies that would ensure 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!

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


FRANKLIN RAINES Raines works for the Obama Campaign as Chief Economic Advisor

TIM HOWARD Howard is also a Chief Economic Advisor to Obama

JIM JOHNSON Johnson hired as a Senior Obama Finance Advisor and was
selected to run Obama's Vice Presidential Search Committee


Would you trust the men who tore Wall Street down to build the New Wall Street ?


Anonymous said...

Problem is, it's a lie. You could have google this and in one minute found out that not one of these people works for Obama. Geez, if you want to get McCain elected, why do you have to lie to do it?

Dane R.

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fugazi said...

The non-partisan concluded that no Fannie Mae executive has (or ever had) an ongoing role with the campaign as an economic adviser:

* Not an adviser: Frank Raines
Barack estimates that he and Raines have talked for "maybe five minutes" in their lives, and Franklin Raines himself even released a statement saying that he is "not an advisor to Barack Obama, nor have I provided his campaign with advice on housing or economic matters."

* Not an adviser: Tim Howard
This supposed connection appears to have been made up completely out of thin air. writes, "We haven't yet found any tangible connection between Tim Howard and the Obama campaign, however, much less any information supporting the claim that Howard is a 'chief economic adviser' to Obama."

* Not an adviser: Jim Johnson
Jim Johnson has never held a paid position with Obama for America. He volunteered to help Barack select a vice presidential nominee but stepped down months ago after just one week.

* Barack Obama and Joe Biden will prevent predatory lending by cracking down on mortgage fraud. They will make sure homebuyers have honest and complete information about their mortgage options, mandate accurate loan disclosure, and give a tax credit to all middle-class homeowners. Read more about the Obama-Biden plan to solve our mortgage crisis:

* Barack Obama introduced legislation in 2006 to combat mortage fraud and in 2007 sent a letter to Treasury Secretary Henry Paulson and FEC Chairmen Ben Bernanke urging them to take action on the looming subprime mortgage crisis.