REMEMBER FRANKLIN RAINES?

He used to be the CEO of Fannie Mae but ran into serious problems back in 2004. The wingnuts used to blame him and others for the housing bubble. Of course, Raines was gone from Fannie Mae well before the bubble started but that didn't stop the agit-prop, even today.  Now, we have some real evidence about wrongdoing at Fannie and Freddie and you won't find Franklin's name in this story.

SEC moves to charge Fannie, Freddie execs
By Zachary A. Goldfarb and David S. Hilzenrath, Friday, March 18, 1:08 AM
Washington Post

The Securities and Exchange Commission is moving toward charging former and current Fannie Mae and Freddie Mac executives with violations related to the financial crisis, setting up a clash with the housing regulator that oversees the companies, according to sources familiar with the matter.

The executives include former Fannie chief executive Daniel Mudd, former Freddie chief executive Richard Syron, former Freddie chief financial officer Anthony “Buddy” Piszel and current Freddie executive Donald Bisenius, who recently announced that he would leave the company after he received his notice.

The allegations are slightly different for both the companies. One of the chief allegations against Fannie executives is that it characterized mortgage loans as “prime” — meaning high-quality — when they should have been classified in a more risky category of loans.


Meanwhile, Freddie executives are accused of not fully warning investors about the risks associated with subprime loans.