Originally posted by zeeblebot
wiki Franklin Raines.
Thanks. It led me to this article:
In the aticle, it says how Raines scammed millions of dollars from Fanny with a mild slap on the wrist. It also points the finger at the Clinton administration for the whole credit crisis.
"Obama in a statement yesterday blamed the shocking new round of subprime related bankruptcies on the free market system, and specifically the "trickle down" economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend. But it was the Clinton Administration, obsessed with multiculturalism, that dictated when mortgage lenders could lend, and originally helped create the market for high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Streets most revered institutions. Tough new regulations forced lenders into high risk areas where they had no choice but to lower lending standards to make the loans that sound business practicies had previously guarded aginst making. It was either that or face stiff government penalties. The untold story in this whole national crisis is that President Clinton put on steriods the Community Redevelopment Act, a well intended Carter era law designed to encourage minority home ownership. And in so doing, he helped create the market for risky subprime loans that he and democrats now decry as not only greedy but "predatory". Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis morgaged backed securities traded on Wall Street. But the seed was planted in the 90's by Clinton andhis social engineers. They were the political catalyst behind this slow motion financial train wreck. And it was the Clinton Administration that mismanaged the quasi-governmental agencies that over the decades have come to manage the real estate market in America. As soon as Clinton crony Franklin Raines took the helm in 1999 at Fannie Mae, for example, he used it as his personal piggy bank, looting it for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud. Other cronies, including Janet Reno aide Jamie Gorelick, padded their pockets to the tune of another $75 million. Raines was accused of overstating earnings and shifting losses so he and other senior execcutives could earn big business. In the end, Fannie had to pay a record $400 million civil fine for SEC other violations, while also agreeing as part of a settlement to make changes in its accounting procedures and ways of managing risk. But it was too little, too late. Raines had reportedly steered Fannie Mae business to subprime giant Countrywide Financial, which was saved from bankruptcy by Bank of America. At the time, the Clinton Administration was pushing for Fannie and her brother Freddie to buy more mortgages from low income households. The Clinton era corruption, combined with unprecedented catering to affordable housing lobbyists, resulted in todays nationalization of both Fannie and Freddie.......(and now for my favority line)......But the government-can-do-no-wrong crowd just does not get it. They will not acknowledge the law of unentended consequences from well meaning, if misguided acts."