Jump to content

Franklin Raines, Ghost Defendant


Recommended Posts

Investors Business Daily:

Subprime Scandal: Obama adviser Franklin Raines is glaringly absent from an SEC lawsuit against Fannie Mae and Freddie Mac executives for defrauding investors. How convenient.

Raines first plunged Fannie into the subprime abyss as its chairman and chief executive from 1999 to 2005 while cooking the mortgage giant's books to score fatter bonuses for himself and other Democrats on its board.

In its complaint against Fannie, however, the Obama administration covers only the period from 2006 to 2008 and names Raines' successor and former protege, Daniel Mudd, as the main defendant. Raines is nowhere to be found in the SEC's 60-page court filing.

Instead, Mudd and two of his top aides are accused of covering up the full extent of Fannie's subprime exposure. But that exposure and cover-up began under Raines, who rolled out Fannie's first subprime mortgage line, known as Expanded Approval.

The program let Fannie's customers rubberstamp borrowers who would have been formerly classified as "Refer with Caution" by Fannie's automated underwriting system.snip
Link to comment
Share on other sites

I was wondering why this guy was not in the lawsuit. I have been saying for years he should be in a jail somewhere instead of the multi millionaire that he is :angry:

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 1709123066
  • Create New...