Fannie Mae VIPS charged by feds (Clinton’s budget director)

[populistdriven]

http://www.abqtrib.com/news/2006/dec/19/fannie-mae-vips-charged-feds/

WASHINGTON — The government has filed civil charges against former Fannie Mae chief Franklin Raines and two other top executives, accusing them of misconduct costing shareholders billions of dollars.

The Office of Federal Housing Enterprise Oversight announced that it is seeking fines and the return of millions in bonus money. It filed 101 charges against Raines; Fannie Mae's former chief financial officer, Timothy Howard; and the former controller, Leanne Spencer.

~snip~

Raines, a prominent Washington figure who was White House budget director in the Clinton administration, led Fannie Mae - with its legendary political clout, generosity in campaign contributions and lobbying savvy - from 1999 until his ouster by the company board in December 2004.

Lockhart said the charges "reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over 20 accounting principles and misleading the regulator and the public."

[napi21]

1. I don't care whose budget director he was! Throw the book at him!

This seems to be a very contagious illness in DC! Anyone who gets their hands on the money controls misuse them!

[aquart]

2. Why does the word "bonus" make me instantly hostile?

[populistdriven]

3. For the same reason Sales People make you hostile?

:rofl:

[aquart]

4. Well, no, they don't, being raised in retail all my life.

I'm just fine with the hard-working small business people trying to survive all over this world.

[populistdriven]

5. Yes, a commission is significantly different from a bonus

So why does a bonus make you so hostile?

Aren't they reasonable thing for employees if they are modest/fair?

[LiberalEsto]

7. Wanna know how Fannie does bonuses?

Upper managers are promised huge bonuses - say $50,000 to $100,000 -if the groups they supervise bring in a project on or before deadline -- and the deadlines are ridiculous. So the workers put in 80-hour weeks to finish by deadline -- or lose their jobs. The manager, who "works" 40 hours or less, collects the big bonus.

The people who did the actual work get nothing. They get to keep their jobs -- except that in many cases they are being replaced by foreign consultants living here on H1-B visas and getting paid less than the American workers who've been laid off.

I have a friend who works there. It's hell.

[Robbien]

6. The Fannie Mae fraud story is so much bigger than Enron

but gets almost no play in the media. This article highlights the bonus aspect which is just one small tiny part of the entire fraud scheme.

Meanwhile, the American public goes shopping blissfully unaware.