Executives People Responsible for the Accounting Fraud of Fannie Mae

Franklin Raines former budget director of Fannie Mae but became a CEO Chair. Under his leadership,
Fannie overstated earnings by stunning $10.6 billion, all the while paying Raines and his senior
management team massive bonuses. Raines became obsessed with keeping earnings per share as high
as possible and motivated management to achieve that goal by setting up a bonus system that rewarded
increasing earnings per share. When OFHEO began to ask uncomfortable questions, Raines actively
lobbied Congress to cut its funding. In April, Raines agreed to disburse $24 million for his role in the
accounting errors.

Timothy Howard former CFO of Fannie Mae. He signed off om the financials that overstated the
companys earnings by $10.6 billion from 1998 to 2004. As his reward, $14 million in salary and $16.8
million in bonuses during the period bonuses based on the earnings plan that Raines set up. As CFO, he
is most responsible for the integrity of financial statements, and he is not only person at Fannie guilty of
constructing fraudulent statements.

Barney Frank the House Financial Services Committee chairman and Democratic congressman from
Massachusetts. As Frank told Money, banks do not lend money to people who cant pay it back-
Franks ideology in this case blinded him for decades to the realities of the marketplace and the
operations at these companies, leading hi, to stonewall realistic reform efforts that might have help
them avoid the current calamity.