…there will be time for them to make profits. There will be for them to get bonuses. Now is not that time…
Sponsors... article continues below...
Now we should take a moment to wonder just where Obama was when his friend and one time campaign advisor Franklin Raines, a former Chairman and C.E.O of Fannie Mae when the Securities & Exchange Commission’s chief accountant ruled that Fannie had improperly accounted for hedging transactions in its trillion-dollar portfolio of derivatives. The SEC eventually ordered Fannie to correct its books wiping out at least $6.3 billion of previously reported profit for years 2001-2004. Keep in mind Raines was paid tens of millions of dollars in bonuses based on those phony profit numbers initiated by manipulating company accounting procedures on top of his multi-million dollar salary, some $50 million in total.
Then we take a look at James Johnson. This would be the same Mr. Johnson who was selected by Obama to lead the vetting of his potential vice presidential running mates and just look at who won the grand prize! He too was a former Fannie Mae Chairman and C.E.O that also benefited from the same type of accounting shenanigans as Raines but what caused him to be dismissed from the veep search team was due more to the nifty mortgage deals he and Raines received through the Countrywide Financial Corporation. For those outside of the loop, Countrywide is forehead deep in the subprime mortgage boondoggle that, fortuitously for Obama, brought our country this financial mess we are currently enjoying.
Who benefited the most from Fannie Mae campaign contributions?
Profits, no matter how phony and criminal they were, seemed to work out pretty well for Obama and his friends back in the day now didn’t they?