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Did ex-Fannie CEO Franklin Raines Commit Perjury?

Posted by Larry Doyle on March 5, 2009 5:50 AM |

I always maintained that Fannie Mae’s risk management was horrendous. Having engaged this organization in business for many years, it was obvious that their risk was managing them rather than vice versa. While the organization mismanaged risk, their former CEO, Franklin Raines, obviously knew it was prudent to keep expenses down. Franklin Raines, however, knows how to play politics with the best of them and has never let his reputation get in the way of developing marketable relationships.

I wrote about Mr. Raines specifically and Freddie Mac and Fannie Mae in general in a piece last October.  I followed that up with a review of Mr. Raines Returns to Washington in mid-December. 

Well, Mr. Raines is now back in the news again. Did he commit perjury in his Congressional testimony addressing his Countrywide mortgage? Raines and many political hacks including Chris Dodd clearly received preferential treatment as a friend of Angelo Mozilo, ex-CEO of Countrywide.  The WSJ writes, Ex-Fannie CEO’s Loan is Questioned.

Another case of a massive conflict of interest? Perhaps, but when Franklin was effectively signing the checks given to all the politicians who are supposed to question him, with the 2nd largest piece of largesse reserved for President Obama, how can we ever expect a fair and thorough hearing?     

LD






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