What is the real cause of the present financial crisis?
Jim Bramlett
Sep 30 2008 10:08AM
<META content=Word.Document name=ProgId><META content="Microsoft Word 11" name=Generator><META content="Microsoft Word 11" name=Originator><LINK href="file:///C:\DOCUME~1\JIMBRA~1\LOCALS~1\Temp\msohtml1\01\clip_filelist.xml" rel=File-List><?XML:NAMESPACE PREFIX = O /><O:SMARTTAGTYPE name="country-region" namespaceuri="urn:schemas-microsoft-com
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Dear friends:
What has been the cause of the current financial crisis?
Americans need to know the truth and we do not need political grandstanding and false accusations.
The problem started when Jimmy Carter and the Democrats passed The Community Reinvestment Act of 1977, designed to help low-income people get homes. Not a bad idea, but in 1995, Bill Clinton and the Democrats made changes to that act, giving massive new and irresponsible provisions for government-secured sub-prime loans. This got totally out of hand. Both President Bush and John McCain have tried to correct the problem but were shot down by Democratic opposition, such as by Chris Dodd and Barney Frank, whose homosexual "boy friend," Herb Moses, was a key player at Fanny Mae.
Both Chris Dodd and Barack Obama received big money from the mortgage lenders. According to the L.A. TImes, "Obama is the recipient of the largest individual money, at $111,849, according to federal campaign finance reports compiled by Times researcher Maloy Moore."
For an excellent overview of the situation, see 9-minute video at http://www.youtube.com/watch?v=TxgSubmiGt8
Now, the Democrats are trying to blame George Bush for the whole problem. They and their ilk seem to have no conscience whatsoever.
Here is a quick look into three former Fannie Mae executives who have brought down Wall Street. <O
></O>
<O> </O>
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 compan y'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 pressure 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. <O></O>
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 negle cting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements a nd inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.' 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. <O></O>
<O></O>
Tim Howard - Was the Chief Financial Officer 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,' <O></O>
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 and the company's board of directors since concluded that management did manipulate 1998 earn ings to trigger bonuses. Raines and Howard resigned under pressure in late 2004. <O></O>
Howard's Golden Parachute was estimated at $20 Million! <O></O>
<O></O>
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. <O></O>
Johnson's Golden Parachute was estimated at $28 Million. <O></O>
<O></O>
WHERE ARE THEY NOW? <O></O>
<O></O>
FRANKLIN RAINES -Raines works for the Obama Campaign as Chief Economic Advisor <O></O>
<O></O>
TIM HOWARD - Howard is also a Chief Economic Advisor to Obama <O></O>
<O></O>
JIM JOHNSONJohnson is Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee
Jim Bramlett
Sep 30 2008 10:08AM
<META content=Word.Document name=ProgId><META content="Microsoft Word 11" name=Generator><META content="Microsoft Word 11" name=Originator><LINK href="file:///C:\DOCUME~1\JIMBRA~1\LOCALS~1\Temp\msohtml1\01\clip_filelist.xml" rel=File-List><?XML:NAMESPACE PREFIX = O /><O:SMARTTAGTYPE name="country-region" namespaceuri="urn:schemas-microsoft-com
ffice:smarttags"></O:SMARTTAGTYPE><O:SMARTTAGTYPE name="Street" namespaceuri="urn:schemas-microsoft-comffice:smarttags"></O:SMARTTAGTYPE><O:SMARTTAGTYPE name="address" namespaceuri="urn:schemas-microsoft-comffice:smarttags"></O:SMARTTAGTYPE><O:SMARTTAGTYPE name="place" namespaceuri="urn:schemas-microsoft-comffice:smarttags"></O:SMARTTAGTYPE><OBJECT id=ieooui classid=clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D></OBJECT>Dear friends:
What has been the cause of the current financial crisis?
Americans need to know the truth and we do not need political grandstanding and false accusations.
The problem started when Jimmy Carter and the Democrats passed The Community Reinvestment Act of 1977, designed to help low-income people get homes. Not a bad idea, but in 1995, Bill Clinton and the Democrats made changes to that act, giving massive new and irresponsible provisions for government-secured sub-prime loans. This got totally out of hand. Both President Bush and John McCain have tried to correct the problem but were shot down by Democratic opposition, such as by Chris Dodd and Barney Frank, whose homosexual "boy friend," Herb Moses, was a key player at Fanny Mae.
Both Chris Dodd and Barack Obama received big money from the mortgage lenders. According to the L.A. TImes, "Obama is the recipient of the largest individual money, at $111,849, according to federal campaign finance reports compiled by Times researcher Maloy Moore."
For an excellent overview of the situation, see 9-minute video at http://www.youtube.com/watch?v=TxgSubmiGt8
Now, the Democrats are trying to blame George Bush for the whole problem. They and their ilk seem to have no conscience whatsoever.
Here is a quick look into three former Fannie Mae executives who have brought down Wall Street. <O
></O><O
> </O>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 compan y'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 pressure 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. <O
></O>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 negle cting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements a nd inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.' 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. <O
></O><O
></O>Tim Howard - Was the Chief Financial Officer 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,' <O
></O>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 and the company's board of directors since concluded that management did manipulate 1998 earn ings to trigger bonuses. Raines and Howard resigned under pressure in late 2004. <O
></O>Howard's Golden Parachute was estimated at $20 Million! <O
></O><O
></O>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. <O
></O>Johnson's Golden Parachute was estimated at $28 Million. <O
></O><O
></O>WHERE ARE THEY NOW? <O
></O><O
></O>FRANKLIN RAINES -Raines works for the Obama Campaign as Chief Economic Advisor <O
></O><O
></O>TIM HOWARD - Howard is also a Chief Economic Advisor to Obama <O
></O><O
></O>JIM JOHNSONJohnson is Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee
