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Blogging for Liberty: Fannie Mae’s Top Executives Left the Firm

Fannie Mae’s Top Executives Left the Firm in Shambles

Raines, Howard Are Out Under Pressure

The Washington Post reported that during his 2008 campaign, Obama’s office phoned Fannie Mae’s  Franklin Raines  for housing advice (and the WP has stood by its reporting).  Move along! nothing to see here (yea, right)!

Franklin D. Raines stepped down December 22, 2004 as chairman and chief executive of Fannie Mae, as the company’s directors ended days of tense and emotional deliberations and bowed to pressure from regulators who wanted him out.

 


 

Franklin D. Raines

 

 

J. Timothy Howard, the company’s chief financial officer, also LEFT SOON AFTER. Howard, 56, joined Fannie Mae in 1982 and had served as chief financial officer since 1990, and in that position oversaw Fannie’s accounting.

Raines’s departure was CALLED an early retirement. HOWARD JUST PLAIN RESIGNED.

Their departures came less than a week after the Securities and Exchange Commission directed the giant mortgage company to correct its illegal accounting.  Fannie Mae stands behind or owned a quarter of the nation’s mortgages and  faced a criminal investigation by the Justice Department, and a class-action lawsuits by investors.  In addition, Fannie’s board hired outside lawyers to investigate the companies shady accounting.

The government-sponsored company has been on the defensive since September, when it was discovered that Fannie Mae had systematically manipulated accounting estimates, ignored accounting requirements it had lobbied unsuccessfully against and operated with weak internal controls that helped obscure its  other financial problems.

Raines, 55, is one of the most prominent African Americans in corporate America, and a darling of the Democrats. He rose from a  welfare family to become a Rhodes scholar, president of the Harvard University Board of Overseers, director of the Office of Management and Budget under President Bill Clinton and a leader of the Washington business community. Yes, he has a pedigree not unlike Obama. His remuneration in 2003, including $3 million in stock options, totaled about $20 million.

In a statement, Raines said: “I previously stated that I would hold myself accountable if the SEC determined that significant mistakes were made in the Company’s accounting. Although, to my knowledge, the Company has always made good faith efforts to get its accounting right, the SEC has determined that mistakes were made. By my early retirement, I have held myself accountable.”

ALTHOUGH it was not obvious at the time, Raines’s downfall began in early 2003, when Fannie Mae’s sister organization, Freddie Mac, disclosed that it had made billions of dollars in accounting errors. Apparently, Freddie Mac executives had gone to elaborate lengths to “cook the books” in order to make its earnings growth appear smooth.

At a congressional hearing in October, Raines pointed to the SEC as the authority on accounting matters and pinned his hopes on a favorable decision from the agency. Last week, the SEC’s top accountant sided with OFHEO on questions of accounting policy, saying that instead of following the requirements, “Fannie Mae internally developed its own unique methodology.”

Fannie Mae had debts to bondholders of $957 billion, equal to about a fifth of the publicly held portion of the U.S. national debt. In addition, the company guaranteed principal and interest payments on $1.9 trillion of mortgage-backed securities.

Established in the 1930s as part of a socialist dream during the Great Depression, Fannie borrows money by issuing bonds and uses that money to buy mortgages from lenders, thereby giving the lenders cash to issue more loans. Fannie also packages mortgages into securities, attaching the company’s guarantee that it will pay investors the principal and interest on the loans if the borrowers default.

Raines was a spokesman for the  Business Roundtable, a group of CEOs of many of the nation’s largest corporations.  Raines even led a task force that publicly criticized executives who shirked responsibility for illegalities within their organizations, but like a true Democrat it was all a show.

JRD

 

 

Blogging for Liberty: Unions Punish Exceptualism

You may know a similar tale, but my high school coach used to tell a story about one summer when he was between college semesters.  He told me that when he was playing ball for a small college in the South he worked one summer in a sawmill to try to earn money to make ends meet. He was so happy to have the job that he was overly enthusiastic and energetic (he seemed to be naturally that way all the time, but I digress).

Anyway, he said that after about a week of working at the saw mill, some union thugs came up to him and asked him what he was doing.  He thought, erroneously, that he was not doing enough; so, he immediately started working harder. However,  to his surprise, the union thugs came up to him a second time and told him that if he did not stop working so hard, then there were going to break his legs (because he is making the other workers look bad).

This type of story is commonplace and exemplifies one of the major problems with any and all systems that do away competition. Without competition effort is thwarted by envy every time (even in the saw mills of the South).

JRD

 

Blogging for Liberty: McCain Stood With ACORN

On Feb. 20, 2006, Sen. John McCain happily accepted the honors and acclamation of the Service Employees International Union (SEIU), People for the American Way, UNITE HERE,  and ACORN.

Yes, good old John told immigration rights activists at a rally in Miami  that they “are what makes America special.” ACORN co-sponsored the rally, and its volunteers surrounded McCain, but while there’s no evidence that McCain ever formally teamed with the group, the video below serves as a reminder that he did not mind being associated with them when the politics of the moment were different.

http://www.youtube.com/watch?v=oJ9wy2MI1NI

Blogging for Liberty: Voter Fraud, LBJ, “The Duke of Duval”, and the Big “O”

Lyndon  B. Johnson  (LBJ) earned the nickname “Landslide Lyndon”  or “Ballot box Johnson” in 1948  when he became a U.S. Senator from Texas on the strength of 87 questionable votes. However, most of us knew Lyndon Banes Johnson as “LBJ” — the tall man with the Texas accent who reluctantly assumed the responsibilities as the 46th president of the United States following the assasination of John Kennedy. Not many of us knew who Lyndon Johnson was before he was placed on the Kennedy presidential ticket in 1960, and as far as most of us knew,  he was simply a senator from Texas.

The setting for the saga of LBJ was South Texas.  The key player was George Parr, “The Duke of Duval,” the boss of the South Texas political machine, and the man called patrón by the Chicano people.

The “Duke of Duval County,” George Parr

Through a powerful network of alliances, George Parr controlled politics in 15 South Texas counties and wielded influence at the state capital and in Washington.  He also exercised considerable power over economic development in his realm, controlling banks and exacting high tax levies.


Parr  controlled the votes in southern Texas, and  of course, there was a price for Parr’s support. Six days after the polls had closed, the winner for Texas Senator was still not decided, but  miraculously, in the district of Alice, Texas, 202 additional votes suddenly appeared in the Precinct 13 voting box. All but 2 of these were cast for Lyndon Johnson. To make matters worse, these 202 names appeared to be added to the list, were in alphabetical order, were in the same handwriting and written with the same ink. When the final results were in that day, with some minor changes in a few other precincts statewide, Johnson went ahead by eighty-seven votes.

George Parr, (second from the left) sufficiently paid by Johnson’s camp,  delivered the Senatorial election to Johnson

A happy "Lyin" Lyndon is sworn in as U.S. Senator on January 3, 1949.

A happy Lyndon is sworn in as U.S. Senator on January 3, 1949

Fast forward 12 years. During the Presidential election of  1960,  Kennedy benefited from voter fraud, especially in Texas and Illinois, as well as in nine other states.  These two states are particularly important because if Nixon had carried both, he would have won the election. Some journalists also later claimed that the Chicago crime syndicate played a role in Kennedy’s victory in Illinois. By-the-way, Kennedy was both the last Northern Democrat and sitting United States senator to win the presidency until Obama. Make no mistake about it, Illinois or not, Johnson, with help from Parr, delivered Texas to Kennedy.

Now, their are those who believed Johnson was also behind Kennedy’s assassination, but I am not one of those; however, LBJ took the opportunity to put in place a statist juggernaut that has throttled this country ever since.

In 1969 LBJ ended his one term as an elected President, and he died 1973. Two years later so did The Duke;  however, just months before the Duke would have been convicted of a multitude of sins, he committed suicide. Yes,  Parr chose to end his own life rather than live out his days behind bars.

But what can we learn from all this? Well, for all you mystics Karma may be real, but LBJ was never rebuked for his sponsoring of voter fraud, and we the people had to endure one of the worst presidents of all time, and Parr help launch one of the most destructive statist politicians the U.S. had ever seen.

I guess it looks like LBJ is going to come in a distant second to the big O, but make no mistake about it, the big O’s machine will make the voter fraud of the Duke and LBJ look like guppy in a sea of sharks.

JRD

 

Blogging for Liberty: Obama Care and Real Death Panels

Obama Care and Real Death Panels

The health care bill hides in its voluminous paragraphs the underlying method of cutting costs which will be based on rationing and denying care (not preventing the need for health care).

It has become pejorative to use the phrase “death panels”, but there are panels that will deny care to people based on probabilities. So, if you don’t meet the probabilities, then you will NOT get the care that your massive tax increases are ostensibly paying for. That is correct! You will no longer be able to decide that you want to live (the government will take that decision away from you). The government bureaucracies will not care if you die, for their goal is to save money by NOT providing permission for life giving care.

This panel, created in the “Stimulus package” (The American Recovery and Investment Act) is called “The Federal Coordinating Council for Comparative Effectiveness Research”.

The panel was established in section 1201 of the Stimulus bill, it was funded with $1.1 billion from the Stimulus bill, and President Obama has already appointed 13 of the 15 member Federal Council.

Don’t believe me? Well here they are:

Anne C. Haddix, Ph.D

Thomas B. Valuck, MD, MHSA, JD

Peter Delany, PhD, LCSW-C

Carolyn M. Clancy, M.D.

David Hunt, M.D.

James Scanlon

Elizabeth Nabel, M.D

Jesse L. Goodman, M.D., M.P.H.

Rosaly Correa-de-Araujo, M.D., M.Sc., Ph.D

Neera Tanden, J.D

Joel Kupersmith, M.D.

Michael Kilpatrick, M.D.

Ezekiel J. Emanuel, MD, PhD

“Comparative Effectiveness Research” is based on the formula that considers the cost per treatment divided by the number of years the patient will benefit from the treatment.

So, if you have a condition that needs treatment, then the panel will approve or rejected your treatment based on how much it costs divided by how much you are worth, in their opinion, to society.

The Stimulus bill goes on to say that if hospitals and doctors save your life but break the government protocol, then you will see your doctor go to prison.

Still not impressed? In section 1233 of the health care bill there is a section that is devoted to “Advanced Care Planning”.  This section states that after each American turns 65 years of age they have to go to a mandated counseling program that is designed to end life sooner.  This counseling session is to occur every 5 years unless the person has developed a chronic illness, and if they do have a chronic illness, then they must be counseled every year!

The topics in these mandatory counseling sessions will include how to decline hydration and nutrition, and how to begin hospice care. (basically a state where your caretakers feel your death is inevitable, or so they think). Sounds like an idea right out of the movie “Logan’s Run”.

For this Obama care plan to work, people need to die sooner and less expensively. Denying health care is exactly the way to do that.

Let’s see? Are there any modern examples? Yes, the swine flu morality rate in Mexico versus the mortality rate here. Same virus, different health care systems, and different rates of mortality.

Anyone prefer the chances in Mexico?

BloggingForLiberty

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