Thursday, July 24, 2008

The Crooks at Fannie Mae

Yesterday we mentioned the bi-partisan rackets and thugs of Fannie/Freddie.

Today we are reminded of the identity of one of the prominent players--who was made rich by virtue of Fannie's earnings-manipulations.

Jamie Gorelick, attorney-at-law, builder of "the Wall", and sanctimonious snot.

How did that work again? Oh, yeah:

The magnitude of Fannie's machinations is stunning, and in two key areas in particular they deserve to be better understood. By improperly delaying the recognition of income, it created a cookie jar of reserves. And by improperly classifying certain derivatives, it was able to spread out losses over many years instead of recognizing them immediately

...The target EPS for maximum payout was $3.23 and Fannie reported exactly . . . $3.2309. This bull's-eye was worth $1.932 million to then-CEO James Johnson, $1.19 million to then-CEO-designate Franklin Raines, and $779,625 to then-Vice Chairman Jamie Gorelick.

Nice reward from Bubba Clinton for her work in protecting terrorists all around the world, no?

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