Former CEO Franklin D. Raines, former Chief Financial Officer J. Timothy Howard and former Controller Leanne Spencer have been named in a lawsuit filed by the Office of Federal Housing Enterprises Oversight trying to recover 215 million dollars. Fannie Mae had over 6.3 Billion dollars in accounting errors and had paid these 3 115 million dollars in bonus’s during the period.

If it was me, I would have thrown these louts in jail. The democratic appointees were in the midst of a fraud that was of Enron-ian proportions yet the media is giving them a pass, and there is very little being said about the situation.

As we have covered here, here, and here, Fannie Mae has been run so poorly during one of the biggest housing growth periods in the countries history. Now facing the downturn, the federally back company is in economic turmoil and the only thing these culprits are facing are monetary fines? Let’s go after them and get to the truth.

Raines and Howard were fired two years ago in the multibillion-dollar accounting scandal at the mortgage giant, which finances one of every five home loans in the United States. Spencer resigned last year.
The oversight office, an agency of HUD, said it is seeking more than $100 million in civil penalties and the recovery of more than $115 million in bonuses from the three.
The charges allege the executives deliberately filed misleading financial reports and failed to establish “sound internal controls” at the government-chartered company.
“The misconduct cost the enterprise and shareholders many billions of dollars and damaged the public trust,” said James B. Lockhart III, director of the regulatory agency.
Raines, Howard and Spencer “knowingly” neglected “accounting systems and internal controls, misapplying over 20 accounting principles and misleading the regulator and public,” Lockhart said. via the  baltimoresun.com.

Related posts:

1. Who Is Watching Fannie And Freddie? Answer Nobody Now. Internal Auditor Fired
2. Fannie and Freddie Fail To Meet Low Income Lending Goals
3. FHA Loses 800 Million Dollars on Reverse Mortgages For Seniors