Hold the Hysteria Oct 21, 2008
Columns, funnies in your inbox. Who will win on November 4th. (Townhall.com)
RNC: (Obama) What We Learned Oct 19, 2008
"Johnson left the company before it was swept up in an accounting scandal that tarred its reputation, but even during the years of scandal, Johnson was reaping hundreds of thousands of dollars in consulting fees and other compensation, $3.3 million in all between 2001 and 2006." (Jonathan Weisman and David S. Hilzenrath, "Obama's Choice Of Insider Draws Fire," The Washington Post, 6/11/08) In 1998, Fannie Mae Improperly Deferred $200 Million Dollars In Expenses, Which Allowed Johnson To Receive... (PR Newswire)
Fannie, Freddie Share Spotlight in Mortgage Mess Oct 16, 2008
Even accounting scandals that led to billions of dollars in fines and remediation costs in recent years failed to bring major change. In October 2005, a majority of Republicans in the House of Representatives joined Democrats in rejecting a Bush administration plan that could have drastically shrunk Fannie and Freddie. (Wall Street Journal)
Financial Crisis, Legal Boom Oct 16, 2008
The mailboxes of Fannie Mae, Freddie Mac, AIG and Lehman Brothers are filling up with subpoenas demanding that the humbled institutions hand over vast stores of data, documents and electronic records. It's a fishing expedition likely to yield enough evidence of impropriety for prosecutors to charge a handful of bad guys for fueling the sudden implosion of financial markets--and set off an inevitable tidal wave of shareholder lawsuits brought against nearly every major financial institution. (Forbes -- Business)
How Congress set the stage for a fiscal meltdown Oct 13, 2008
In 2003 and 2004, both companies were wracked by accounting scandals that led to the ouster of top managers. In 2005, Sen. (USA Today)
Truth gets twisted in Palin's stump speeches Oct 8, 2008
She referred to Jim Johnson, who chaired Fannie Mae from 1991-1998, and Franklin Raines, his successor who stepped down in 2004 in an accounting scandal. But Palin exaggerated Obama's ties to Raines and Johnson while omitting any mention of a closer relationship between a top McCain aide and the failed housing giants. (San Francisco Chronicle -- Politics)
Fact checking the debate Oct 8, 2008
The nonpartisan fact-checking group said McCain signed on to a Republican bill in 2006 that would overhaul Fannie Mae and Freddie Mac after both went through accounting scandals. In a May 26, 2006 news release, McCain said: If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole. (Klamath Falls Herald & News, OR)
Mountain: Barney Franks inflated ego Oct 8, 2008
A year later when the Fannie and Freddie accounting scandal started to break, underscoring the hazards of minimal congressional oversight, with the resulting mismanagement and purported embezzlement of Fannie and Freddie funds by its directors, Mr. Frank responded, I don t think we are facing any kind of crisis. At the same hearing he went on to berate the regulators who raised these issues, as well as his Republican colleagues, such as Christopher Shays, who warned that Fannie and Freddie were... (Newton Tab, MA)
Live, from New York, Sarah Palin! Oct 5, 2008
3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama s presidential campaign seeking his advice on mortgage and housing policy matters. (Atlanta Journal-Constitution -- Opinion)
Ex-McAfee executive clear of illegal option dating Oct 5, 2008
During that same period, the company was also enduring an unrelated accounting scandal that involved a scheme to falsely inflate revenue to hide hundreds of millions of dollars in losses. U.S. District Judge Susan Illston on Thursday sentenced the company's former chief financial officer Prabhat Goyal to one year and a day in prison after a jury convicted him in May 2007 of securities fraud. (Yahoo News)
Troubled bailout talks restarted - with urgency Oct 3, 2008
ONLY IN AMERICA wrote on Sep 26, 2008 7:42 AM:" Here's an idea: FIRE any member of congress who took money from the low life people who scammed the financial system. Then prosecute Franklin Raines, Fannie Mae's chief executive under the shadow of a $6.3 billion accounting scandal. Under Raines, Fannie Mae committed 'extensive financial fraud.' Raines made millions. Fannie Mae collapsed. Taxpayers? Stuck with the bill." And YES he has given OBAMA guidance for financial advise. Barney Frank &... (The Pantagraph newspaper)
Brookline white-collar attorney to lead Boston Bar Association Oct 3, 2008
In the two decades since, she said she s seen federal prosecutors get tougher on executives, especially after accounting scandals at Enron and WorldCom. I think the government has some very powerful tools at its disposal that were not there, or not in use, 20 years ago, she said. (Brookline TAB, MA)
U.S. agency's '04 rule let banks pile up debt and risk Oct 3, 2008
Goldschmid, an authority on securities law from Columbia, was a behind-the-scenes adviser in 2002 to Senator Paul Sarbanes when he rewrote the nation's corporate laws after a wave of accounting scandals. "Do we feel secure if there are these drops in capital we really will have investor protection?" Goldschmid asked. (International Herald Tribune)
Meltdown sparks ID crises for sports arenas Oct 3, 2008
NEW YORK - First the bursting of the dot-com bubble in the 1990s, then the accounting scandals earlier this decade, forced ballparks and arenas around the country to change their names. Enron Field became Minute Maid Park, and names like PSINet Stadium and CMGI Field vanished. (MSNBC -- Business)
Obama’s Friends at Fannie Mae Oct 3, 2008
Back in 2004, Fannie was embroiled in an accounting scandal and in October of that year, the House conducted hearings ... Turns out that she was Vice Chairman of Fannie Mae from 1997 until 2003 -- smack in the middle of the accounting scandal. (Human Events Online)
Greenberg can bid for AIG assets Oct 3, 2008
Greenberg left AIG in 2005 following an accounting scandal. He has denied any wrongdoing. (The Star Online, Malaysia -- Business)
America has a tough vote on Nov. 4 Oct 3, 2008
falcon wrote on Oct 1, 2008 4:00 PM:" Democrats on the committee rallied to Fannie's defense. Rep. Barney Frank, D-Mass., said he had seen nothing in the report that suggested Fannie's "safety and soundness" were compromised.Others said Fannie's mission of supporting homeownership must be preserved.The accounting scandal comes against a background of debate in Washington over how best to regulate Fannie and its fellow government-sponsored entities. This was the democrats incompetence with the... (Lodi News Sentinel, CA)
Jerry Jackson: The biggest economic villian - Barney Frank Sep 25, 2008
When the multi-billion accounting scandal broke, Mr. Franks says, "I do not think we are facing any kind of crises". When the housing market started to go south, Mr. Frank belatedly encouraged the companies to guarantee more 'affordable' mortgages. (Heber Springs Sun-Times, AR)
NYT: McCain aides firm was paid by Freddie Mac Sep 24, 2008
They dissolved the group at the end of 2005 as part of cost-cutting in the wake of accounting scandals and, at Freddie Mac, a lobbying scandal that forced out its former top Republican lobbyist. 1. (MSNBC -- Politics)
NCT: LETTERS, Sept. 23, 2008 Sep 24, 2008
Back in 2005, someone with foresight, John McCain, presented this to Congress: "Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were 'illusions deliberately and systematically created' by the company's senior management, which resulted in a 10.6 billion accounting scandal. The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally... (North County Times)
Blame Fannie Mae and Congress Sep 23, 2008
Let's review: In order to curry congressional support after their accounting scandals in 2003 and 2004, Fannie Mae and Freddie Mac committed to increased financing of "affordable housing." They became the largest buyers of subprime and Alt-A mortgages between 2004 and 2007, with total GSE exposure eventually exceeding $1 trillion. In doing so, they stimulated the growth of the subpar mortgage market and substantially magnified the costs of its collapse. (Wall Street Journal)
Another View Sep 23, 2008
In the aftermath of the Enron collapse and other accounting scandals, he was a leader, with Sen. Carl M. Levin, D-Mich. (Hanford Sentinal, CA)
How the Democrats Created the Financial Crisis: Kevin Hassett Sep 23, 2008
They were enmeshed in accounting scandals that led to turnover at the top. At one telling moment in late 2004, captured in an article by my colleague , the Securities and Exchange Comiission's chief accountant told disgraced Fannie Mae chief that Fannie's position on the relevant accounting issue was not even ``on the page'' of allowable interpretations. (Bloomberg -- Columnists)
Can you trust a Wall Street veteran with a Wall Street bailout? Sep 22, 2008
"In recent days, there've been few outward expressions of distrust of Paulson in particular. In fact, many said his long reign on Wall Street make him uniquely qualified to deal with today's problems."Hank is the right guy," New York Mayor Michael Bloomberg, who made his millions providing information to Wall Street traders, told NBC's Meet the Press. "If I had to have one person at the helm today I would pick Hank Paulson. "But the conflicts are also visible. Paulson has surrounded himself with... (Anchorage Daily News)
Recession Lesson: Greed Not So Good? Sep 21, 2008
The accounting scandals at Enron, Global Crossing, WorldCom, etc. combined with the bursting of the dotcom stock bubble, pushed the economy down in 2001. (ABC News -- Business)
U.S. Could Emerge as Major Player in Suits Stemming From Financial Crisis Sep 20, 2008
When the economy took a dive at the beginning of the decade amid a rash of accounting scandals, securities class action lawyers were center stage. carrying boxes of documents into federal court in Houston to file a suit on behalf of Enron Corp. shareholders is one of the iconic images of that period. (Law.com)
Pointing fingers on the economy Sep 20, 2008
Raines headed Fannie Mae from 1998 to 2004 and agreed in April to pay nearly $25 million in a settlement with the government in an accounting scandal while there. "Barack Obama, bad advice, bad instincts. Not ready to lead," the announcer says. (Boston Globe)
Economy Forcing Campaigns To Refocus Sep 19, 2008
McCain charged Obama with tapping two former Fannie Mae executives as advisers, James Johnson and Franklin Raines, who left under the cloud of an accounting scandal. "When I pushed legislation to reform Fannie Mae and Freddie Mac, Sen. Obama was silent," McCain told a rally in Iowa Thursday. (San Francisco Chronicle -- Politics)
WASH POST: Drudge-ology 101... Sep 18, 2008
Drudge-ology 101: McCain, Obama and Media Bias - The Fix. Play the electoral outcome prediction game. (The Drudge Report)
How Wall St. thanks us Sep 18, 2008
The dispute dims prospects for quick passage of a bill at a time when recent accounting scandals at Freddie Mac have focused attention on the need for better policing of the two financial giants, government and industry officials said yesterday. A senior Treasury Department official called the legislation a weak effort that preserves the status quo. (Atlanta Journal-Constitution)
Congress Leaving Financial Crisis to Paulson, Bernanke as Election Nears Sep 18, 2008
In 2002, after accounting scandals forced and WorldCom Inc. into bankruptcy, Congress passed the Sarbanes-Oxley law, setting new corporate-governance rules. While the measure passed unanimously in the Senate and overwhelmingly in the House, it has since become a target of criticism from some Republicans, including presidential candidate , and from many in the business and financial worlds. (Bloomberg -- US)
Experts urge their clients not to panic Sep 17, 2008
Freeman pointed to economic recoveries after events such as terrorist attacks in 2001, corporate accounting scandals in 2002 and Hurricane Katrina in 2005. He said the financial situation now may be more extreme but suggested people with investments have a diversified portfolio. (The Clarion-Ledger)
Fed's $85 Billion Loan Rescues Insurer Sep 17, 2008
A.I.G. is a sprawling empire built by Maurice R. Greenberg, who acquired hundreds of businesses all over the world until he was ousted amid an accounting scandal in 2005. Many of A.I.G. s subsidiaries wrote insurance of various types. (Atlanta Journal-Constitution -- Business)
A Race for Cash at A.I.G. as Ratings Are Downgraded Sep 16, 2008
But Maurice R. Greenberg, the visionary leader who built A.I.G. but was removed during an accounting scandal in 2005, has offered to help with any restructuring. Mr. Greenberg and his lawyers asked on Saturday if he could play a role in overhauling A.I.G. The deadpan response, according to a person close to the company, was: If you are willing to make a multimillion-dollar equity investment, we are happy to talk. (Atlanta Journal-Constitution -- Business)
HANK'S AIGITA ON STOCK Sep 16, 2008
The 83-year-old billionaire, who left AIG in 2005 amid an accounting scandal, has lost more than 6 billion in the past week, and is on the verge of losing his billionaire status altogether as AIG shares continue their free-fall. Indeed, with AIG shares down 90 percent so far this year, and well off their high of 70. (New York Post -- Business)
AIG Scrambles to Raise Capital, Sell Assets Sep 15, 2008
A 2005 accounting scandal precipitated Mr. Greenberg's departure. He has denied wrongdoing. (SmartMoney)
New owners of Freddie Mac and Fannie Mae - U.S. taxpayers - deserve transparency Sep 14, 2008
And, in another twist, we may also be asked to cover the legal bills of Franklin Raines, the former chief executive of Fannie Mae, who was ousted after that company's accounting scandal in 2004. Under the terms of his separation agreement, Fannie Mae paid these bills. (International Herald Tribune -- Business)
Our View: Bailed out, now they should be broken up Sep 12, 2008
In 2005, after an accounting scandal, regulators severely constrained Fannie and Freddie's activities, to the point that they had only 14. 4 percent of the secondary mortgage market. (Appeal Democrat, CA)
Xerox's success is a reflection of her dedication Sep 11, 2008
Critics said the former human resources manager lacked the savvy to rescue Xerox from an accounting scandal, crushing debts and plunging sales in 2000. Now she must prove whether she can maintain her company's growth at a time when global economies are sagging and demand for her black-and-white printing machines, still Xerox's core business, is rapidly shrinking. (Globe and Mail)
Takeover tabs taxpayers to shoulder mortgage risk Sep 10, 2008
President Bush did urge Congress earlier in his presidency to rein in Freddie and Fannie after an accounting scandal, and subject them to some of the kind of controls and capital requirements that apply to commercial banks. White House press secretary Dana Perino made note of that on Monday, telling reporters, Remember that we have highlighted the systemic risk posed by Fannie Mae and Freddie Mac because of the very large role they play in housing markets and because of their business practices. (Ontario Argus Observer, OR)
Fannie CEO Pay Blasted Sep 10, 2008
Another former CEO of Fannie Mae, Franklin Raines, was fired in 2004 by its board in an accounting scandal, but collected disputed bonuses of 52 million and was replaced by his No. 2 - Mudd. "When a conservator takes over, the conservator has the absolute right to decide if these executives deserve their severance under their contracts and whether they should receive any severance or bonuses at all," said compensation lawyer Alan Sklover, who represents CEOs and bankers. (New York Post -- Business)
Fannie Mae's Patron Saint Sep 9, 2008
A month later, Freddie Mac's multibillion-dollar accounting scandal broke into the open. But Mr. Frank was sanguine. (Wall Street Journal)
If takeover tanks, we're holding bag Sep 9, 2008
"Fannie, Freddie and the Federal Housing Administration now account for backing or issuing roughly three-quarters of the nation's mortgages, with commercial banks playing a decreasing role since the start of the housing-credit crisis.For a Republican administration that has favored market remedies and less government intervention, and once boasted of an "ownership society" with more individual ownership of private homes, retirement savings accounts and health care policies, the takeover of... (News & Observer)
U.S. Takeover Of Fannie, Freddie Still Doesn't End Troubled Saga Sep 9, 2008
This politically corrupt bargain was directly responsible for the accounting scandals and the growing involvement of Fannie and Freddie in the subprime lending market, even though their rules require them to only make loans to credit-worthy borrowers. The rules were bent for political purposes not for economic need. (Investors Business Daily)
U.S. Talks With Fannie, Freddie Turned Sour: Sources Sep 8, 2008
"The letter listed almost everything that had been a concern or under examination since" the companies had to restate earnings after accounting scandals, said one industry source familiar with the letter and the negotiations with the Treasury and the regulator, the Federal Housing Finance Agency (FHFA). "It was basically a grab-bag.". (ABC News -- Wire)
Allison, Moffett Assume Reins from Mudd, Syron as Fannie, Freddie Seized Sep 8, 2008
Fannie CEO Daniel Mudd and Freddie's , both hired in 2004 to help the companies recover from accounting scandals, led the firms into riskier investments, moving well beyond their public mission of housing affordability, and then failed to react quickly enough when the market began to deteriorate in 2007. and Dick Syron, have been very slow to recognize the depth of the problems or to raise enough capital to deal with it,'' said , an analyst with Friedman Billings Ramsey & Co. in Arlington,... (Bloomberg -- US)
Takeover seen easing loan crisis Sep 7, 2008
Syron, who completed two corporate turnarounds after leaving the Fed in 1994, arrived at Freddie in late 2003 to rebuild a company reeling from accounting scandals. By most accounts, he succeeded in cleaning up the accounting mess. (Boston Globe)
Government may soon back troubled mortgage giants Sep 6, 2008
Mudd, the son of TV anchor Roger Mudd, was elevated to Fannie Mae's top post in December 2004 when chief executive Franklin Raines and chief financial officer Timothy Howard were swept out of office in an accounting scandal. Syron was named Freddie Mac's CEO in 2003, replacing former chief Gregory Parseghian, who was ousted in after being implicated in accounting irregularities. (Anchorage Daily News)
Sources: Gov't takeover of Fannie, Freddie expected Sep 6, 2008
Mudd, son of TV anchor Roger Mudd, was elevated to Fannie Mae's top post in December 2004 when chief executive Franklin Raines and chief financial officer Timothy Howard were swept out of office in an accounting scandal. Syron was named Freddie Mac's CEO in 2003, replacing former chief Gregory Parseghian, who was ousted in after being implicated in accounting irregularities. (USA Today -- Money)
Worker assets shrink at Fannie and Freddie Aug 30, 2008
Their ability to sell and diversify was often limited by restrictions on the grants, the terms of the specific plans and tighter rules on selling by employees while they addressed years-earlier accounting scandals. For decades, both companies offered lush benefits, with traditional pension plans, 401(k)s, stock plans and other niceties, like child care plans. (International Herald Tribune -- Business)
Fannie, Freddie workers lose money Aug 29, 2008
Their ability to sell and diversify was often limited by restrictions on the grants, the terms of the specific plans and tighter rules on selling by employees while they addressed years-earlier accounting scandals. Compensation experts say employees and employers have learned from the painful stock losses by employees at technology firms and companies such as Enron and WorldCom. (OregonLive, OR -- Business)
Fannie Mae unveils management shakeup Aug 29, 2008
Mudd was elevated to the top post in December 2004 when former CEO Franklin Raines and chief financial officer Timothy Howard were swept out of office in an accounting scandal. Falling stock pricesFannie and Freddie Mac, its sibling agency, saw their stock prices plummet last week as fears mounted they would soon need government support and that any bailout would leave stockholders in the lurch. (MSNBC -- Business)
Three Fannie Mae Execs out, Shares Rally Earlier Aug 28, 2008
Stephen Swad, who was CFO since early 2007 and helped Fannie return to timely filing of financial statements following a major accounting scandal, was replaced by Fannie Mae Controller David Hisey, the company said. Peter Niculescu, head of capital markets, will replace Robert Levin as chief business officer. (ABC News -- Wire)
Fannie and Freddie's blame game Aug 24, 2008
The mission is why the companies were able to run roughshod over their regulator for years, and why the Bush Administration was unable to rein them in, even after an accounting scandal ... Then, in 2003, came the accounting scandal in which the two were forced to restate billions of dollars in earnings. (International Herald Tribune -- Business)
Fannie, Freddie stay in free fall on bailout talk Aug 21, 2008
Both companies were involved in accounting scandals in 2003 and 2004, prompting allegations of mismanagement. With files from Reuters. (Globe and Mail)
'Liar loans' threaten to prolong mortgage crisis Aug 20, 2008
Fannie and Freddie entered the market for risky loans just as they emerged from accounting scandals. At the time, Wall Street giants such as Bear Stearns and Lehman Brothers Holdings Inc. were backing a growing share of ever-riskier loans, and both government-sponsored companies felt pressure to compete. (San Diego Union-Tribune -- Business)
Probe into CEN still going on Transmile Aug 19, 2008
This time last year during the accounting scandal that struck the air-freight firm, a special audit by Moores Rowland Risk Management Sdn Bhd revealed that a CEN subsidiary owed Transmile RM103mil and had recommended an investigation on CEN.. There was also concerns of under-billing or non-billing by Transmile to CEN.. (The Star Online, Malaysia)
No Limit to Greenspan's Once-In-A-Century Events Aug 19, 2008
The burst tech-stock bubble exposed a rash of corporate malfeasance and accounting scandals. An ``infectious greed seemed to grip much of our business community,'' producing a ``once-in- a-generation frenzy of speculation that is now over,'' Greenspan Congress on July 16, 2002. (Bloomberg -- Columnists)
HealthSouth CEO Grinney sells $300,000 in company shares Aug 7, 2008
Grinney, who took HealthSouth's reins in May 2004, has directed the company during its reorganization following a multibillion-dollar accounting scandal. After taking control of a company whose stock was trading near $5 per share, Grinney has unloaded debt and non-inpatient rehabilitation divisions. (Birmingham Business Journal)
Syron's side of the story Aug 6, 2008
Former Boston Fed president Richard Syron arrived at Freddie Mac in 2004, tasked with cleaning up after an accounting scandal ... The credit warnings reported by the Times came not long after Syron arrived in 2004 to fix Freddie, reeling from an accounting scandal in which executives misstated some $5 billion in earnings. (Boston Globe)
Pair settle fraud lawsuit at SeraCare Aug 3, 2008
Two former executives of SeraCare Life Sciences have settled a civil fraud lawsuit with the U.S. Securities and Exchange Commission related to an accounting scandal at the company three years ago ... The SEC had filed the civil fraud lawsuit against the two men in connection with an accounting scandal that led to SeraCare, formerly based in Oceanside, filing for Chapter 11 bankruptcy in March 2006. (San Diego Union-Tribune -- Business)
Shell Sees Record Profits Off High Oil Prices Aug 1, 2008
Petercam analyst Alexandre Weinberg repeated his "buy" recommendation, saying the company has been undervalued since 2004 when it was forced to restate its proven oil reserves in a major accounting scandal. 1. (ABC News -- Wire)
Housing plan signed, but concerns linger Aug 1, 2008
Their growth enriched shareholders and management, including former Clinton budget chief Franklin Raines, who earned as much as $20 million running Fannie Mae from 1999 to 2004 before leaving during an accounting scandal. Last year, even as the company's stock plunged by half, Freddie Mac chairman Richard Syron was paid $19. (San Francisco Chronicle)
McCain Talks Straight on Fan-Fred Reform Aug 1, 2008
And Obama advisor Franklin Raines -- the former Fannie Mae CEO who was forced to resign over accounting scandals -- argues for the status quo. But McCain is talking real reform. (Human Events Online)
LETTERS: NCT, July 30, 2008 Jul 31, 2008
During that period, FNMA developed a $10 billion accounting scandal. Oops. (North County Times)
