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SBD
Admiral
Joined: 19 Aug 2004
Posts: 1022
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 Posted: Sat Jun 03, 2006 7:48 am Post subject: No Slap on the Fannie for former Clinton Admin Officials |
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Why are these people not in jail. This scandal is ten times bigger than Enron ever was!!
Could it be because these theives were part of the Clinton Administration?
Thieves like former Fannie Mae Chief Executive Officer Franklin Raines and former Fannie Mae Vice Chairman Jamie Gorelick which were both instrumental figures in the Clinton administration.
Link to 348 page PDF of the report.
Report of the Special Examination of Fannie Mae
| Quote: | | Senior management expected to be able to write the rules that applied to Fannie Mae and to thwart efforts to regulate the Enterprise. As Mr. Mudd remarked in the memorandum to Mr. Raines mentioned above, “We used to, by virtue of our peculiarity, be able to write, or have written, rules that worked for us.” Writing their own rules included deciding when to comply with GAAP, engaging in and concealing earnings management, and failing to cooperate with and trying to interfere with OFHEO’s special examination. |
| Quote: | On February 16, 1999, Controller Leanne Spencer omitted information on the same topic from a presentation to the Board’s Audit Committee on “The Year in Review, The 1998 Annual Report.” Her notes for that presentation explain that the purpose of the meeting was to present highlighted sections of the draft 1998 Fannie Mae Annual
Report that might be of interest to the members of the committee. Her notes also discuss adjustments to the Enterprise’s year-end results:
The first adjustment, the $180 million and the $60 million, represent our recording additional amortization of purchase premium and discount balances associated with our net mortgage portfolio and a similar adjustment to prepaid or deferred guaranty fees. The additional amortization reflects OUR estimates of the effects of the sustained decline in interest rates and the high level of 1998 refinancing activity is having on our book to date and going forward. As interest rates change, we routinely revaluate the rate at which we are amortizing and when
appropriate – adjust the rates by speeding these up or down.” That statement misrepresented management’s estimates. The adjustment to which Ms. Spencer refers is only the recorded portion of the estimated 1998 catch up. Another $200 million was to be deferred, but she did not discuss that important fact. |
| Quote: | Fannie Mae made a point of not calling KPMG’s attention to its buy-up accounting. In July 1999, Mr. Boyles wrote that “KPMG has not questioned our accounting treatment for buyups even though we have not necessarily been faithful to IO accounting. One of the reasons they have not questioned our treatment is that the cash flows are part of a guarantee fee payment and don’t ‘sound’ like an IO.” Fannie Mae opposed Freddie Mac’s retention of KPMG to replace Arthur Andersen, in the wake of the Enron scandal, in part because Freddie Mac properly accounted for its buy-ups and KPMG would notice. Referring to buy-ups here as “IOs,” Ms. Spencer wrote, “We believe it is a good thing for the ‘industry of two’ to have different auditors. It gives us a vehicle to get a second opinion at
times. . . .There is at least one thing that we know of where we have a favorable accounting treatment and that is on the IOs we have on our books. Freddie is doing IO accounting and we are not. KPMG hasn’t figured that out—but Jonathan reminded me of this.” |
| Quote: | An internal Fannie Mae Gross Wage Analysis for Mr. Johnson for 1998 provided a clearer estimate of the actual 1998 compensation of Mr. Johnson. It showed total wages and other earnings to Mr. Johnson of nearly $21 million, including the Performance Share Plan deferral and the deferred benefits related to the exercise of certain stock options.
That opaque public disclosure of Mr. Johnson’s 1998 compensation reflected an allowance for ambiguity regarding Fannie Mae executive compensation. Lorrie Rudin, Director for Executive Compensation and Benefits, referred to that ambiguity as “unusual” reporting of deferred Performance Share Plan shares. To cite another example, the value of the 2001 longterm incentive payout to Mr. Raines in the form of Performance Share Plan shares totaled $6.803 million. The Summary Compensation Table included in the proxy statement for that year, however, listed his 2001 long-term incentive plan payouts at $2.779 million—a difference of $4.024 million. A table footnote indicated that the long-term incentive plan payouts reported were net of shares deferred, and that Mr. Raines deferred 49,699 shares. |
SBD |
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Deuce
Senior Chief Petty Officer
Joined: 19 Mar 2005
Posts: 589
Location: FL
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| Posted: Sat Jun 03, 2006 12:42 pm Post subject: |
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SBD,
You have found this year's Annual Cover Up...the drive-by media is still playing stooge for the Klintons! The $11Billion stolen from US Taxpayers and well hidden in obfuscation reporting by the drive-by media (DBM) tops the Enron story of course, and affects all Americans not just the lonely souls (like Lay on down) at Enron who lost their life savings!....so yes the scandal is as you say | Quote: | | ten times bigger than Enron ever was!! |
the 'Big Finger' points directly at the same Jamie Gorelick who gave us the CIA/FBI Chinese wall obfuscation project that resulted in 9/11 and the 9/11 CoverUP Commision....for a real treat, search for in the linked document...there are 207 topics to read on the gentleman who was the pawn hired by MsGorelick to do the dirty work. she found him in the Controller's job where he was doing a great job (since he didn't have CPA) to begin with....and promoted him to head the 'Audit Commision' where he could do even more irreparable damage!
Wonder who was in charge of that coverup at the NYuk Times!
Deuce
ps keep Barf Bag nearby at all times, I know I did |
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SBD
Admiral
Joined: 19 Aug 2004
Posts: 1022
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| Posted: Sat Jun 03, 2006 5:20 pm Post subject: |
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Can the media at least try to hide their bias??
Media Ignore Democratic Ties to Fannie Mae Scandal
Papers largely bypass Franklin Raines service in Clinton White House but focused on Enron ties to Bush.
| Quote: | | Of the nation’s top five newspapers, only The New York Times mentioned Raines’s Clinton connection. The Wall Street Journal didn’t just ignore Democratic links to Fannie Mae, it reported on Republican connections. In the last paragraph of that story, reporter James R. Hagerty pointed out the “strong ties” between the chairman of gulf Bank and Florida Gov. Jeb Bush and linked that to a failed investment. |
| Quote: | | The February 24 Washington Post business section featured three stories, all of which mentioned Raines, but not his political connections or campaign contributions. USA Today’s Edward Iwata similarly left out Raines’s politics while saying the report gave “positive portrait of Fannie Mae’s board, clearing them of direct responsibility for the company’s accounting troubles.” The Los Angeles Times ran a Reuters article that similarly did not disclose that Raines served as director of the Office of Management and Budget in the Clinton White House. |
SBD |
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BuffaloJack
Master Chief Petty Officer of the Navy
Joined: 10 Aug 2004
Posts: 1637
Location: Buffalo, New York
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| Posted: Sat Jun 03, 2006 9:40 pm Post subject: |
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| SBD wrote: | Can the media at least try to hide their bias??
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Nope!!
That would be like asking rats not to eat cheese.
_________________
Swift Boats - Qui Nhon (12/69-4/70), Cat Lo (4/70-5/70), Vung Tau (5/70-12/71) |
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