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Commentary On Fannie Mae Contributions To Democrats

My Articles

Sue Kirchhoff, "Fannie Mae CEO Raines defends leadership," USA Today, 10/6/04

Marcy Gordon, "Lawmaker Asks DOJ To Probe Fannie Execs," The Washington Post, 6/14/06

Anita Huslin, "On The Outside Now, Watching Fannie Falter," The Washington Post, 7/16/08)

Franklin Raines
Who Am I?

"Under Heavy Pressure From Regulators, Fannie Mae, The Mortgage Finance Giant, Forced Out Its Chairman And Chief Executive, Franklin D. Raines, Late Tuesday, Days After The Company Was Found To Have Violated Accounting Rules." (Stephen Labaton, "Chief Is Ousted At Fannie Mae Under Pressure," The New York Times, 12/22/04)

  • "Industry And Congressional Sources, Who Spoke On Condition Of Anonymity, Said Fannie Mae’s Board Had Been Pressured To Ask For The Resignations Of Both Raines And Chief Financial Officer Timothy Howard By The Company’s Chief Regulator, The Office Of Federal Housing Enterprise Oversight." (Martin Crutsinger, "Two Top Executives At Fannie Mae Forced Out In Shakeup At Mortgage Giant," The Associated Press, 12/21/04)

Like Jim Johnson, Raines Received Low-Rate Home Loans From Countrywide, A Major Seller To Fannie Mae. "Fannie Mae's former CEO, Jim Johnson, resigned Wednesday as the leader of likely Democratic presidential nominee Barack Obama's search for a running mate after The Wall Street Journal reported that he and another former CEO, Franklin Raines, received low-rate home loans from troubled mortgage lender Countrywide Financial Corp. a major seller of home loans to Fannie Mae." (Alan Zibel, "Fannie Mae CEO Says Ethics Policy Bans Discounts," The Associated Press, 6/12/08)

"Regulators Have Accused [Fannie Mae] Of Manipulating Earnings, And Fannie Has Estimated That It May Have To Record $9 Billion Of Losses That It Had Kept Off Its Income Statements Since The Beginning Of 2001, When A Key Accounting Rule Took Effect." (David S. Hilzenrath and Kathleen Day, "After Scandals, Someone Must Pay," The Washington Post, 1/20/05)

  • Raines: "[To] My Knowledge, The Company Has Always Made Good-Faith Efforts To Get Its Accounting Right, The S.E.C. Has Determined That Mistakes Were Made. By My Early Retirement, I Have Held Myself Accountable." (Stephen Labaton, "Chief Is Ousted At Fannie Mae Under Pressure," The New York Times, 12/22/04)

"Raines, A Former Head Of The Office Of Management And Budget In The Clinton Administration, Earned Total Compensation In Salary And Bonuses Of $20 Million Last Year..." (Martin Crutsinger, "Two Top Executives At Fannie Mae Forced Out In Shakeup At Mortgage Giant," The Associated Press, 12/21/04)

  • "Raines’s Total Compensation In 2002 Was $17.7 Million." (Albert B. Crenshaw, "High Pay At Fannie Mae For The Well-Connected," The Washington Post, 12/23/04)
  • "In 2003…Raines’s Total Compensation Of $5.41 Million Included $4.18 Million In Bonuses." (Kathleen Day, "Bonuses Targeted," The Washington Post, 1/6/05)

"Mr. Raines, Who Was Chairman And Chief Executive, Is Eligible For Monthly Pension Payments Of $114,393 For Life, Or Close To $1.4 Million A Year, The Company Said." (Riva D. Atlas, "Fannie Mae To Review Pay Packages Of Ex-Officials," The New York Times, 12/28/04)

"[Franklin Raines] Is Also Owed $8.7 Million In Deferred Compensation. And Mr. Raines, 55, Holds Vested Options For 1.6 Million Shares Of Stock, Plus Options For 368,800 Shares That He Becomes Eligible For Upon Retirement. He Has A Life Insurance Benefit Of $5 Million Until Age 60, With A Benefit Of $2.5 Million Afterward." (Riva D. Atlas, "Fannie Mae To Review Pay Packages Of Ex-Officials," The New York Times, 12/28/04)

"Raines Settled Charges Brought By The Office Of Federal Housing Enterprise Oversight By Agreeing This Spring To Pay $2 Million And Forfeiting $22.7 Million In Stock And Other Benefits. And Though None Of It Will Come Out Of His Pocket -- The Payment Was Covered By Insurance -- He Has Not Emerged Unscathed." (Anita Huslin, "On The Outside Now, Watching Fannie Falter," The Washington Post, 7/16/08)

Under Raines’ Leadership, Fannie Mae Committed "Extensive Financial Fraud" And Was Forced To Pay A $400 Million Civil Penalty. "In a May report, the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight found that Fannie Mae under Raines perpetrated ‘extensive financial fraud’ so that executives could collect big bonuses. There have been no criminal charges, but the conduct of Raines and other senior Fannie executives ‘was inconsistent with the values of responsibility, accountability, and integrity,’ the agencies said. Fannie paid a $400 million civil penalty this year to the SEC and OFHEO." (Jay Hancock, Op-Ed, "Raines Claiming Accountability Isn't Enough," The [Baltimore] Sun, 12/10/06)

Facts About Me and Barack

The Obama Campaign Has Solicited Franklin Raines, Who "Stepped Down As Fannie Mae’s Chief Executive Under The Shadow Of A $6.3 Billion Accounting Scandal," For Advice On Mortgage And Housing Policy. "In the four years since he stepped down as Fannie Mae's chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case's D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters." (Anita Huslin, "On The Outside Now, Watching Fannie Falter," The Washington Post, 7/16/08)

My Donations and Bundling for Barack

Since 2004, Raines Has Contributed At Least $1,000 To Obama. (CQ Money Line Website, qmoneyline.com, Accessed 9/26/08)

What Barack Says About Me