Let me get this straight. This snake oil salesman gets fired over his financial shenanigans, and Fannie Mae is told NEVER to hire him again, and they are still giving him stock options?
Would someone please throw this corrupt jerk in gaol?
Raines Sues OFHEO Over Stock
By David S. Hilzenrath
Washington Post Staff Writer
Friday, July 6, 2007; D01Former Fannie Mae chairman Franklin D. Raines has mounted a new challenge to the government’s power over the federally chartered mortgage funding company, arguing that regulators have no authority to delay his receipt of a $3.9 million stock award.
Raines sued regulators this week to get the shares released, and yesterday a federal judge scheduled a hearing on the question for July 16.
The fresh challenge comes as legislative efforts to give federal regulators more power over the company have stalled.
Raines is one of many current and former Fannie Mae executives who have been waiting to receive payouts pegged to the company’s performance from 2003 through 2006, including periods when Fannie Mae’s earnings were misstated and, regulators allege, the company was mismanaged.
Raines left the company after the Securities and Exchange Commission ordered it in 2004 to correct years of financial reports that overstated profit by billions of dollars. In reaching a $400 million settlement with regulators last year, Fannie Mae agreed never to employ Raines again.
As the company worked on straightening out its books, it delayed deciding how much stock its executives should receive under certain incentive plans. Last month, Fannie Mae’s board proposed releasing millions of dollars of awards — subject to approval by the Office of Federal Housing Enterprise Oversight.
The agency has since sought more information from Fannie Mae about how it arrived at the amount of the awards and told the company to keep the payments on hold until it completes its review.
The agency has warned Fannie Mae that any stock awards it released “could prove irretrievable” and could leave the company liable if later found to be excessive, according to a document filed in court yesterday.
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