Ousted Fannie Mae Chairman Awaits Pension ( $114,000 a Month for Life)

[CountAllVotes]

Forced-Out CEO of Mortgage Giant to Get $114,000 a Month for Life

WASHINGTON (AP) -- Franklin Raines, who was forced out as Fannie Mae's chief executive after five years, is slated to receive a monthly pension of more than $114,000 for life, according to documents the mortgage lending giant filed Monday with the Securities and Exchange Commission.

The documents also reveal that Raines has deferred compensation of $8.7 million to be paid out through 2020 and owns more than $5.5 million in Fannie Mae's stock.

Federal regulators have asked Fannie Mae to hold off paying out any compensation to Raines until they have time to investigate the package, and whether it was appropriate for the federally chartered lender to let Raines retire early rather than be dismissed.

Raines was forced out Dec. 21 by Fannie Mae's board of directors, along with Chief Financial Officer Timothy Howard.

The Office of Federal Housing Enterprise Oversight, or OFHEO -- the company's chief regulator -- pressured the board to act after the SEC said the company must make accounting corrections that could erase $9 billion of past profit dating to 2001.

edited to add link: http://biz.yahoo.com/ap/041227/fannie_mae_1.html


:nopity: what a heart breaker, only $114,000.00 a month pension for just one more CROOK! :grr:

[roguevalley]

1. THat is more than my lifetime savings working 30 years.

[w4rma]

2. That is worth 24 employees paid at about $60,000 per year, each. (nt)

[annabanana]

3. THAT is pornographic...

absolutely disgusting, obscene...

[CountAllVotes]

9. yes it is XXX obscene!

I probably worked for as many as 10 years to make $114,000 looking back! However, the point is, this guy belongs IN JAIL IMO! It amazes me the way they are just ignoring this obvious criminal and to add insult to injury to we the American people (many of who have possibly unknowingly invested in Fannie Mae via mutual funds) the ultimate blow (or kick in the rear) by paying this fraudulent crook $114,000.00 a month as PENSION!

:grr:

[MSgt213]

4. How is that man supposed to live on that small of a pension.

[Turbineguy]

5. 114K per month.

How will he manage?

[mitchum]

6. Up against the wall, Franklin!

How much longer will we allow these pigs to get away with this???!!!

[Paul Hood]

7. Link? n/t

[CountAllVotes]

10. http://biz.yahoo.com/ap/041227/fannie_mae_1.html

Here is the link, sorry about that.

http://biz.yahoo.com/ap/041227/fannie_mae_1.html

[Paul Hood]

14. Thanks, no need to apologize.

[pinerow]

8. Dem's that got...keep gettin

nt

[gristy]

11. Rape and Pillage

That's what this is. And nobody, absolutely nobody, is going to lift a finger to stop it.

[Paleocon]

12. Big deal... 114k per month....

We send billions and billions overseas every year in foreign aid to some very NON-deserving recipients...

At least this money stays in the country and I'll he spends most of it every month anyway...

[Paul Hood]

15. Care to name these NON-deserving recipients

and how that justifies this.

[LincolnMcGrath]

16. This poster has a plethora of RW talking points.

Run a search.

[Paul Hood]

18. I wonder why they are here?

They don't seem to be hiding under a fake name. Paleocon has the con right in it.

[Paleocon]

21. RW talking points???

Please speak plainly. If there is something bothering you please let me know.

[LincolnMcGrath]

30. Its plainly no bother for me.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1086033#10882571088257


http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1086033#10882601088260


http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=2863913#28639612863961


http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=2863913#28640522864052


http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=2863913#2864777

[Paleocon]

20. Do you have a couple hours????

The list of countries that we send aid (bribes) to is basically endless.

My point is, why get bent over 114k a month when there are billions sent overseas every year that could be used to much better effect here at home....

[Paul Hood]

27. Let's just take the top ten. Then it won't be endless. n/t

[Paleocon]

29. Pushy, pushy....

I found some charts here : http://www.globalissues.org/TradeRelated/Debt/USAid.asp

They rank the top 10 countries receiving US aid as...

1. Egypt
2. Russia
3. Israel
4. Pakistan
5. Serbia & Montenegro
6. Columbia
7. Ukraine
8. Jordan
9. Peru
10. Afghanistan

So if we cut aid to all of them, plus all the rest we could have

1. Universal Healthcare
2. Fully funded Social Security
3. Better salaries for teachers
4. Strengthen borders & INS
5. Better care plans for seniors
etc... etc...

But I guess those are just RW talking points???

[SOS]

45. Total US ODA was $15 billion.

US ranks last (22nd out of 22 countries) in terms of GDP percentage given in official development assistance.
The New York City school budget is about equal to all US foreign aid combined. ($13 billion/year).

Could you clarify how the US can fund :

1. Universal Healthcare
2. Fully funded Social Security
3. Better salaries for teachers
4. Strengthen borders & INS
5. Better care plans for seniors

with only $15 billion dollars?
The US spends that much on the Iraq occupation every three weeks.
$15 billion would only support the US healthcare system for 4 days.

[Paleocon]

49. So you're telling me that if we leave Iraq tomorrow we can do it?

Ok, I'm sold. I like your plan better.

15 billion just doesn't go as far as it used to.

[Paul Hood]

31. I apologize, I missed your equation of aid to bribes.

Are we aiding or bribing Franklin Raines?

[Paleocon]

38. LOL... Bribing, aiding....

I don't know, which do you call it when someone puts a gun in your face and demands your money?

:think:

[da_chimperor]

19. You've completely and totally missed the point.

Whether or not the money stays in the country doesn't matter. It's how much money he's getting. That's an absurd amount of money for a pension. How does the company justify that? I can't think of a way. Can you?

[Paleocon]

22. Absolutely no way to justify it...

It is completely insane.

The dollar is worth so little these days that eventually the joke will be on him and his 114k per month won't even keep him in hot coffee.

[da_chimperor]

26. Okay . . .

So if you agree that the company is paying him an unjustifiable pension, why did you say big deal in your original post?

[Paleocon]

28. Not sure....

I think I must have been confused...

[CountAllVotes]

25. you are right

It is justifiable on no level whatsoever, even if the amount is fifty cents. Even that is too much. :grr:

[InvisibleBallots]

34. Fannie Mae is basically government subsidized

by our tax money - it's a big deal

[DoYouEverWonder]

39. So you approve of people

who rip us off being allowed to rip us off even more? Sorry, I work too hard for money to see fat cats living the soft life who should be in jail instead.

[donheld]

13. I myself Awaits Pension ( $114,000 a Month for Life)"

too bad "it's just my imagination running away with me"

[Just Me]

17. Gross. No wonder this country is so messed up.

We refuse to place a ceiling on greed or a floor on poverty.

Sadly.

[0007]

23. Outrageous! and we wonder what's wrong with a America.

[4dsc]

24. CORPORATE GREED!!

Enough said!!

Until the sheeple in this country wake up, this will be the norm!!

[Ilsa]

32. Thug doesn't deserve $114K a month even if he didn't

cook the books for Fannie Mae. I hope they get the proof, take back their bonuses, toss these farts in prison and void their pensions.

[Thor_MN]

33. When are we going to end circle jerk corporate boards?

It should be a requirement to have something like 7 levels of separation between boards. That is, CEO A of Corp A should not be able to sit on the board of Corp B, with CEO B sitting on Corp C's board, with CEO C sitting on Corp A.

Either that or bring back the three martini lunch, so the CEO assholes will have somehting other to do than vote themselves obscene raises.

[Just Me]

47. Corporatists create a scheme, then get laws advancing their scheme,...

,...via their political corporate partners. It's the most amazing RICO scam which has evolved,...destroying both democracy and the American people.

They are the scum of the earth,...sitting in control over and consuming both humanity and the earth.

Aside from expressing opposition,...I tend to imagine boils covering their bodies,...for emotional relief *LOL*!!!!

[soothsayer]

35. the whole BOD needs to go! who would approve this nonsense?

[diamond14]

36. the guy must be bush's FRIEND: the HAVES and the HAVE MORE

this is REAL over the top....


Why is bush's other Friend "kenny-boy lay" STILL not even CHARGED? ken belongs in PRISON too...but bush's HAVES and HAVE MORE all get the 'special' treatment: criminals with golden parachuttes, and carribean island hideouts...

hey bush ! Have you even taken kenny-boy's passport away, while you piddle around in your never-ending INVESTIGATION???

WHERE IS YOUR GOOD FRIEND, kenny-boy?

[FDRrocks]

37. And some people can't secure a FRIGGING PENSION!!!!!!!!!!!!!!

5 years of work pushing goddamned paper, and this is what he gets? Fuck this guy, fuck him to hell.

This reminds me of a Chris Rock sketch about divorce. "Well, Judge, I'm accustomed to....".

[salin]

40. Since when did we start rewarding horrible service with HUGE benefits,

pensions, bonuses, etc.?

Seems that throughout the bubble burst we kept hearing about miserable CEOs (eg those who had done a poor job) getting HUGE bonuses... of course this was justified by "we have to pay well in order to get the best..." if the best oversee poor performance - perhaps it is time to start outsourcing the CEOs... I mean there are some very high performing German, and Japanese companies (and others) who most certainly are not given the level of compensation here... stock holders could get 'em much more cheaply - and probably get much better performance...

sheez so messed up are we...

[Catchawave]

41. USAir's CEO got 11m bonus this year....

There oughta be a law!

http://compensation.blr.com/display.cfm/id/153715

[Supersedeas]

42. Golden parachutes and Presidential Pardons for the Privileged...some get

to be President too....

[cosmicdot]

43. more details of Raines' gains

UPDATE: Ex-Fannie CEO Gets $19M Severance Package

December 27, 2004

(Updates with more detailed information on Messrs. Raines' and
Howard's termination benefits.)


By Dawn Kopecki
Dow Jones Newswires

WASHINGTON -- Fannie Mae (FNM) disclosed Monday that ousted Chief
Executive Franklin Raines will leave the company with a minimum
severance package valued at more than $19 million and an annual
lifetime salary of $1.4 million.

Mr. Raines also will receive another $21 million in previously
restricted stock, prorated potential future stock payouts valued at
up to $23.8 million, a possible cash bonus for 2004 and an
undisclosed amount of 401(k) benefits, among other compensation. All
stock values were calculated based on a Dec. 21 closing price of
$70.35.

Mr. Raines, who contends that his effective retirement date is in
June, will additionally receive another $600,000 in base salary for
the next six months. The company also has agreed to maintain a $5
million life insurance policy for Mr. Raines, 55, through age 60 and
to keep up his full medical and dental coverage, among other
benefits.

~snip~

Messrs. Raines and Howard respectively stand to get an additional
$4.9 million and $1.7 million in restricted stock, which would become
immediately exercisable upon their termination dates, for the three-
year performance cycle ended Dec. 31, 2003. The board is currently
reviewing those stock awards pending the outcome of the company's
earnings restatement. The values of those shares are based on a Dec.
21 closing stock price of $70.35.

The company also said both Messrs. Raines and Howard believe they are
entitled to full termination benefits and that disputes to the
contrary would be settled through arbitration.

Messrs. Raines and Howard are also entitled to prorated shares of
their performance stock ...

~snip~

http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20041227-000438-2305

[Blue_Tires]

44. CEO-license to steal

this should surprise no one, and expect to see more of it in the future

[Rex]

46. Federal regulators = BFEE whipping boys

nt

[dddem]

48. Ah, yes...

But what REALLY matters is that Martha Stewart got hers.