Thank you Deb for this piece.   Here is the "denial" or "politically corrected versions" of the stories FYI also.
 
1.  Snopes analysis http://www.snopes.com/politics/obama/fanniemae.asp
2.  http://www.truthorfiction.com/rumors/o/Obama-fannie-mae-advisors.htm
3.  http://www.alltheinternet.com/texis/open/alltb?q=%33%20former%20Fannie%20Mae%20executives%20who%20have%20brought%20down%20
 


Here is a quick look into 3 former Fannie Mae executives who have brought down
Wall Street.

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae. Raines
was forced to retire from his position with Fannie Mae when auditing discovered
severe irregulaties in Fannie Mae's accounting activities. At the time of his
departure The Wall Street Journal noted, " Raines, who long defended the
company's accounting despite mounting evidence that it wasn't proper, issued a
statement late Tuesday conceding that "mistakes were made" and saying he would
assume responsibility as he had earlier promised. News reports indicate the
company was under growing pre ssure from regulators to shake up its management
in the wake of findings that the company's books ran afoul of generally accepted
accounting principles for four years." Fannie Mae had to reduce its surplus by
$9 billion.

Raines left with a "golden parachute valued at $240 Million in benefits. The
Government filed suit against Raines when the depth of the accounting scandal became clear.

http://housingdoom.com/2006/12/18/fannie-charges/

. The Government noted, "The 101 charges reveal how the individuals improperly
manipulated earnings to maximize their bonuses, while knowingly neglecting
accounting systems andinternal controls, misapplying over twenty accounting
principles andmisleading the regulator andthe public. The Notice explains how
they submitted six years of misleading andinaccurate accounting statements
andinaccurate capital reports that enabled them to grow Fannie Mae in an unsafe
and unsound manner."&nb sp; These charges were made in 2006. The Court ordered
Raines to return $50 Million Dollars he received in bonuses based on the
miss-stated Fannie Mae profits.

Tim Howard - Was the Chief Financial Offic er of Fannie Mae. Howard "was a strong
internal proponent of using accounting strategies that would ensure a "stable
pattern of earnings" at Fannie. In everyday English - he was cooking the books.
The Government Investigation determined that, "Chief Financial Officer, Tim Howard, failed to provide adequate
oversight to key control and reporting functions within Fannie Mae,"

On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to
investigate his allegations that two former Fannie Mae executives lied to
Congress in October 2004 when they denied manipulating the mortgage-finance
giant's income statement to achieve management pay bonuses. Investigations by
federal regulators andthe company's board of directors since concluded that
management did ma nipulate 1998 earnings to trigger bonuses. Raines andHoward
resigned under pressure in late 2004.

Howard's Golden Parachute was estimated at $20 Million !

Jim Johnson - A former executive at Lehman Brothers and who was later forced
from his position as Fannie Mae CEO. A look at the Office of Federal Housing
Enterprise Oversight's May 2006 report on mismanagement and corruption inside
Fannie Mae, and you'll see some interesting things about Johnson. Investigators
found that Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation
from the public, reporting that it was between $6 million and $7 million when it
fact it was $21 million." Johnson is currently under investigation for taking
illegal loans from Countrywide while serving as CEO of Fannie Mae. Johnson's
Golden Parachute was estimated at $28 Million.


WHERE ARE THEY NOW?
Franklin Raines works for the Obama Campaign as Chief Economic Advisor

TIM HOWARD Howard is also a Chief Economic Advisor to Obama

JIM JOHNSON Johnson hired as a Senior Obama Finance Advisor andwas selected to
run Obama's Vice Presiden tial Search Committee

IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS HAVE THE EXPERTISE - THEY
MADE THE MESS IN THE FIRST PLACE.