Fannie Mae's Chief Executive Raines Ousted, Market News Says

[TacticalPeek]

Fannie Mae's Chief Executive Raines Ousted, Market News Says

Dec. 21 (Bloomberg) -- Fannie Mae Chief Executive Officer Franklin Raines was ousted after the Securities and Exchange Commission said the company broke accounting rules, ending his six-year tenure as head of the largest U.S. mortgage finance company, Market News reported.

The 55-year-old Harvard-educated Rhodes scholar and former budget director under President Bill Clinton, will be replaced by Daniel H. Mudd, the current vice chairman and chief operating officer, Market News said, citing a person it didn't identify. Stephen B. Ashley, a member of the Washington-based company's board and past president of the Mortgage Bankers Association, will take over as chairman from Raines, Market News said.

Raines had lost the confidence of many investors after 18 months of assurances that the government-chartered company's accounting was sound. His resignation may remove an obstacle to efforts in Congress to create a stronger regulator for the company and Freddie Mac, which together own or control about half $7.6 trillion mortgage market.

Raines's denials were ``a chink in their armor'' and ``tainted'' him in the eyes of investors, William Van Arnum, an analyst at Principal Financial Group in Des Moines, Iowa, said before the announcement. ``It's difficult to get out from under that cloud.''

Principal sold 12 percent of its 790,410 shares in the third quarter, according to regulatory filings.


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http://quote.bloomberg.com/apps/news?pid=10000103&sid=aEEz1iev8FaY&refer=news_index#

[MidwestTransplant]

1. In 2000, there was talk of him for Treasury Secretary

[Carolab]

2. This is because the AEI is trying to privatize Fannie Mae and Freddie Mac

AEI (American Enterprise Institute) is claiming that Fannie Mae has mismanaged funds which poses a "threat to taxpayers" and therefore the functions of both institutions should now be privately managed.

This includes not only traditional lending functions but ALSO real estate. The realtors lobby is one of the largest and strongest in the country. They are trying to wipe out government-guaranteed mortgage loans AND the independent real estate indusry in one fell swoop--bringing these functions inside private banks.

[kuozzman]

3. About damn time!!

His resignation may remove an obstacle to efforts in Congress to create a stronger regulator for the company and Freddie Mac, which together own or control about half $7.6 trillion mortgage market.

Yeah, b/c congress is always striving to put in place stronger regulation of corporations and government....