Fannie Mae Broke the Trust and is in Shambles
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Fannie Mae was considered an iconic company on the American lndscape providing a bridge between the private and public sector to manage the United States mortgage industry. After the infamous reign of Franklin Raines as the head of Fannie Mae ran the reputation and integrity of the company into the ground.
Of course it is not surprising that he was a Clinton compatriot. May we hope that this institution can redeem itself and become the company that it once was.
Daniel Mudd, the president and CEO, acknowledged that Fannie Mae had broken a public trust. But he said the company today was nearly unrecognizable from before. “We have made changes. We are making progress. And we have much more to do,” he said in testimony prepared for delivery at a Senate Banking Committee hearing.
“There is absolutely no routine, process or control anywhere in the company that is beyond the scope of overhaul and improvement to the highest standard,” Mudd said.Mudd and Fannie Mae Chairman Stephen Ashley were appearing before the committee as pressure mounted from government officials seeking to rein in the company’s growth.
Fannie Mae also is being to recover bonus money from some company officials. Current and former executives of the government-sponsored company reaped hundreds of millions of dollars in bonuses in a deceptive accounting scheme over six years, federal regulators have alleged.
Senators denounced the pervasive accounting fraud and unethical conduct detailed in the regulators’ allegations against Fannie Mae. Some drew parallels with Enron. Several urged congressional action to curtail the massive mortgage holdings of Fannie Mae and its smaller government-sponsored sibling, Freddie Mac.
“A shocking and disturbing picture of irresponsible behavior,” declared Sen. Wayne Allard, R-Colo. via Kenai Peninsula Online
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Comment by Dennis Sweatt on 15 June 2006:
Why do you have to throw politics into a financial statement.
Keep your ideology to yourself and report the information if you want to claim to be a site for information.
This is supposed to be a Real Estate Blog, it is not.
It is a Real Estate Political Blog, so change the title.
And grow up while your at it, once these people reach that level of polotics they don’t care if your a Demo or a Repub.
You are just a number, a statistic. We pretend to matter, but we don’t have any real power.
Think I’m wrong, prove it, let’s see you change the world even in a small way, I’ll give you a week.
The truly powerful can do it in a day.
Sorry to ramble so much, it just pissed me off to come looking for industry information and find a political diatribe.
ALL polotitions are at one time or another crooks and liars, it’s how the system is built. One side is no better then the other, they just got caught less.
Swim with sharks etc.
Comment by Drive By Man on 16 June 2006:
Geez, I actually like the character that are given to certain posts. An opinion every now and again cant hurt anyone and hell I voted for WJC twice.
If you just want the crux of the info then just go to the link. No reason to get so upset other than the fact they you may not have liked what was said.
By the way … you don’t think people can change things in the world … oh boy could I prove you severely wrong on that one. Think positive thoughts and they might just come to fruition.
Pingback by How Will The Change In Power In Washington Affect Housing » The Real Estate Bloggers on 4 December 2006:
[...] However, expect to see more programs and benefits for low income housing and more oversight of the programs currently in place. Freddie Mac and Fannie Mae will probably have greater scrutiny, but even then it will be very little as those in charge when the fraud occurred were Clinton appointees. So the Hillary Clinton camp is not going to want that dirty laundry aired before the Presidential election. [...]
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Pingback by Fannie Mae Ex-Exec’s Sued For 215 Million Dollars — The Real Estate Bloggers on 24 June 2007:
[...] we have covered here, here, and here, Fannie Mae has been run so poorly during one of the biggest housing growth periods [...]
Pingback by Could Fannie Mae Go Belly Up? — The Real Estate Bloggers on 14 March 2008:
[...] past history of Fannie Mae has been checkered. Billions of dollars of losses left a mess from the Franklin Raines days and now with the housing situation weakening the risks to Fannie Mae could be [...]
Pingback by Are Fannie Mae and Freddie Mac A Danger To US Economy? — The Real Estate Bloggers on 19 May 2008:
[...] under capitalized, it gives me a cause for concern. We have all tried to get past the misdeeds of Franklin Raines running Fannie Mae into the ground just a few years ago. And that was in a white hot real estate [...]