December 19, 2006
I'VE HEARD ABOUT FANNIE MAE SCANDALS FOR A WHILE: Now they're getting some attention: "Federal regulators Monday filed civil charges against former Fannie Mae CEO Franklin Raines and two other former executives, accusing them of manipulating Fannie Mae's earnings to jack up their bonuses." Is this the whole thing, or just the beginning?
UPDATE: Joel Mackey emails: "Enron, Worldcom, et al are blared as indictments of capitalism, but let a government agency bilk millions from the public and nary a peep." If it's only bilking millions, it's not news. Usually, they milk billions!
ANOTHER UPDATE: Steven Jens emails: "Fannie Mae isn't a government agency. It was spun off into an
investor-owned corporation. The government just co-signs its loans. Why they should be doing that is a damn good question. And I think it means the government should be expected to be exercising extra oversight, and can therefore be blamed more than when officers of non-government-endorsed companies break the law. But it's more like Enron or Global Crossing than it is like the CIA." Well, sort of, maybe. Fannie Mae is also an employment agency for apparatchiks.