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Obama's politics as usual

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Arlene Barron, Colorado Springs

Published September 30, 2008 at 6 p.m.

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Two of Barack Obama’s economic advisers (Franklin Raines and Jim Johnson ) have been involved in scandals while CEO’s of the disgraced Fannie Mae.

On May 23, 2006 the Office of Federal Housing Enterprise Oversight released a report entitled “Report of the Special Examination of Fannie Mae” which outlined a culture of corruption at Fannie Mae. The report stated that Raines and his team engaged in an “Enron-like” fraud where they “cooked the books”, grossly overstating Fannie Mae’s earnings to the tune of $10.6 billion for the purpose of paying themselves big bonuses. Raines (Bill Clinton’s Budget Director) received $90.12 million over six years before being forced to resign in December 2004 over gross mismanagement. Johnson received a $1.9 million bonus in 1998. Johnson was also cited for receiving below-market homes loans from Countrywide Financial.

Despite being in the senate only four years Barack Obama received $126,349 in donations from Fannie Mae, second only to fellow democrat, Chris Dodd (another recipient of special loans from Countrywide). Since Obama lacks any executive or managerial experience and had only 143 working days in the senate before announcing he was ready to lead the country, thus spending the last two years on the road, he will need to depend on experts to make the difficult financial decisions affecting the well-being of our country.

Do we really want an inexperienced candidate depending on advice from Washington insiders who have used these financial institutions as their personal piggy banks for years? Sounds like politics as usual, Senator Obama, instead of change.

Comments

  • September 30, 2008

    9:14 p.m.

    Suggest removal

    LetsThink writes:

    Thanks Arlene.

    This is a matter of concern, regarding Mr. Obama.

  • September 30, 2008

    10:06 p.m.

    Suggest removal

    me2 writes:

    Same for McCain. His advisor took money from the FM's last month. Money meant to get McCain to fight any more regulation on them. Shocking.

  • October 1, 2008

    12:35 a.m.

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    KarlCheney writes:

    OMG, Could this be true that a politician had money given to his campaign from a corp. or lobby entity. Did it go to both sides OMG, how could this happen in America?

  • October 1, 2008

    7:29 a.m.

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    Acemon writes:

    Two of Obama's economic advisers were part of one company's meltdown. It's not a great thing, but we all need to keep in mind McCain's part of the savings & loan scandal in the 80's, when he tried to influence regulators and investigators in an attempt to protect his big donors.

  • October 1, 2008

    7:39 a.m.

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    Michael writes:

    It makes me sick when the left harps about "special interest" groups when they refer to people and organizations that contribute to GOP candidates and causes. They NEVER use that term with regard to Fannie Mae, ACORN, unions, trial lawyers, Hollywood, MoveOn, and every other left-wing organization and group of kooks out there that raise $$$ for left wing candidates. One man's "special interest group" (GOP) is another's loyal followers and supporters (liberal Dems) I guess.
    Thanks Arlene for getrting this info out there. I have been posting this info on Raines and Johnson as much as I can. BTW - Frank Raines now works for Obama and will probably get a cabinet post if Obama wins. They are at the root of this financial meltdown and the left is trying to hide that fact. Let's not forget Barney Frank and Maxine Waters and all the left-wing Dems who supported and DEMANDED that these high risk loans be made to people who were not qualified. ACORN is also at the heart of MULTIPLE voter fraud lawsuits and investigations in key swing states. They are not to be trusted.

  • October 1, 2008

    9:02 a.m.

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    Acemon writes:

    Malachi_Constant,

    When I replied to the letter, and wrote "Two of Obama's economic advisers were part of one company's meltdown," I should have followed it with "so what." As you put it (paraphrased), the lies of the right are given too much credence.

    However, I believe both sides lie, both sides distort, and both side will do anything possible to gain power and influence. As I once told Jesse Ventura "Anyone who aspires to the office of President should automatically be disqualified."

    Oh, by the way, Kurt Vonnegut Jr. wants his charactor's name back. The Sirens of Titan is still one of my favorite books. Perhaps I should change my screen name to Kilgore Trout.

  • October 1, 2008

    9:15 a.m.

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    Acemon writes:

    Solomon,

    All this bickering between "left" and "right" is a scam to keep us from looking at the real issues. I don't trust ANY politician and neither should you. Obama and McCain will say or do anything in their quest for power. Vote for a star-bellied Sneech or non-star Sneech, but both Sneechs are the same.

  • October 1, 2008

    9:55 a.m.

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    Acemon writes:

    Solomon,

    I agree Obama lacks experience and is no-doubt part of the Chicago machine and beholden to his corporate backers. By contrast, McCain is part of the Congessional machine and no-doubt beholden to his back-room deal makers. I'd be temped to vote Libertarian, but their choice of Barr is equally bad (he once tried to pass legislation banning "alternative" religions from military bases).

    If I have to vote for one, I guess I'll vote for the man who's the same age as me and promises some sort of change.

  • October 1, 2008

    10:09 a.m.

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    grandpaw writes:

    Malachi posts the facts. Solomon posts his speculation. He has the impression that if he says something, he doesn't need any facts to support what he says and others have the burden of proving him wrong. Yet, he calls himself "Solomon".

  • October 1, 2008

    10:51 a.m.

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    leftside writes:

    So there ya go grandpaw. Your to old and grumpy to comment on this site.

    Solomon has arrived, factless and fully brainwashed by conservative talking heads and now you must leave.

    And you wonder why conservatives can't run this country.

  • October 1, 2008

    11:41 a.m.

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    Michael writes:

    Hey Malachi - http://en.wikipedia.org/wiki/Franklin...
    On December 21, 2004 Raines accepted what he called "early retirement" [4] from his position as CEO while U.S. Securities and Exchange Commission investigators continued to investigate alleged accounting irregularities. He is accused by The Office of Federal Housing Enterprise Oversight (OFHEO), the regulating body of Fannie Mae, of abetting widespread accounting errors, which included the shifting of losses so senior executives, such as himself, could earn large bonuses [5].
    In 2006, the OFHEO announced a suit against Raines in order to recover some or all of the $50 million in payments made to Raines based on the overstated earnings [6] initially estimated to be $9 billion but have been announced as 6.3 billion.[7].
    Civil charges were filed against Raines and two other former executives by the OFHEO in which the OFHEO sought $110 million in penalties and $115 million in returned bonuses from the three accused.[8] On April 18, 2008, the government announced a settlement with Raines together with J. Timothy Howard, Fannie's former chief financial officer, and Leanne G. Spencer, Fannie's former controller. The three executives agreed to pay fines totaling about $3 million, which will be paid by Fannie's insurance policies. Raines also agreed to donate the proceeds from the sale of $1.8 million of his Fannie stock and to give up stock options. The stock options however have no value. Raines also gave up an estimated $5.3 million of "other benefits" said to be related to his pension and forgone bonuses.[9]
    An editorial in The Wall Street Journal called it a "paltry settlement" which allowed Raines and the other two executives to "keep the bulk of their riches." [10] In 2003 alone, Raines's compensation was over $20 million.[11]

  • October 1, 2008

    4:43 p.m.

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    grandpaw writes:

    Michael, if you have any sense at all, you won't vote for Raines for president.

  • October 1, 2008

    5:03 p.m.

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    grandpaw writes:

    Solomon: "Sure, that's what it is and if you say so. Get out of your rocker and disprove the dates and facts I quoted Sorry I struck a nerve."

    Thanks, Solomon, I thought you'd never ask.

    You haven't posted any dates or facts about Obama in this thread. I'm interested in the presidential election.

    In another thead, you posted: "Franklin Raines works for the Obama campaign as Chief Economic Advisor." That is an out and out lie, and you have absolutely no support for it. Will you admit that or do you need for me to repeat the proof I provided in that other thread?

    Sorry I struck a nerve. And I use an overstuffed recliner rather than a rocker, although when I drink too much wine it does seem to rock a little.