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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

  • fiscalliberal

    It would be my guess that your former congressman Shays could tell us a lot about Franklin Raines. He was the subject of the F/F lobbyists and their attacks.

    Sunday’s show should be interesting in terms of all the developments. Today there is a hearing, I think in the house Financial Services committee on future regulation.

    Reading the Document “Sold Out” and watching the hearing today should provide a lot of material for discussion. It will be available on C-Span or the house Finacial committee for real time or later viewing. The nice thing about the House Fincance web is they publish the opening statements by the witnesses which can be insightfull reading.

    Would you agree that Geitner is much more articulate now. I think his problem was, unrealistic expectations from Obama on the first public meeting. Hence, it might be said that Obama did not have the experience to realize the complexity of the situation. Another case of his staff not breifing him properly or him not listening.

    I think Orzag (OMB) will be the guy to watch regarding reality. Geitner is the knowlegeable cheer leader.

  • Larry Doyle

    I have started to review the document Sold Out and it is truly enlightening on the widespread influence of money paid by Wall Street firms to pols and lobbyists. Thanks again for sharing that piece. It was a great find.

    In regard to Geithner and Obama, expectations were and IMO are still too high. When you have a system that has approximately $1 trillion in embedded losses, it is hard to look good. That said, I think there are measures they could have taken to mitigate the expectations but I guess we would put those in the “growing pains” category.






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