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post #1 of 16 (permalink) Old 01-25-2011, 12:15 AM
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U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives - FoxNews.com
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post #2 of 16 (permalink) Old 01-25-2011, 12:26 AM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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On Monday, Edward J. DeMarco, acting director of the Federal Housing Finance Authority, which now oversees Fannie and Freddie, issued a statement defending the ongoing legal payments.

"I understand the frustration regarding the advancement of certain legal fees associated with ongoing litigation involving Fannie Mae and certain former employees. It is my responsibility to follow applicable federal and state law. Consequently, on the advice of counsel, I have concluded that the advancement of such fees is in the best interest of the conservatorship," DeMarco said.
As distasteful as it is, they are being sued as a result of the positions they held with Freddi/Fannie.

It is not unusual for a company to defend employees, even ex-employees who were fired... when the company itself is also involved with the lawsuit.

It serves the company's best interest, to keep everyone together under the same defense.

.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #3 of 16 (permalink) Old 01-25-2011, 01:23 AM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

I could care less...

They should not be getting my tax dollars for being worthless thieving bastards.

Now Gandy, I am sure you will spin it somehow but thats the truth.

NO one is going to come save me if I break the law. No special treatment for me.

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post #4 of 16 (permalink) Old 01-25-2011, 01:54 AM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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Originally Posted by CSIPSD View Post
I could care less...
You mean you couldn't care less.



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They should not be getting my tax dollars for being worthless thieving bastards.

NO one is going to come save me if I break the law. No special treatment for me.
Keep in mind, that should the exec's be found guilty.....Freddie/Fannie could ask to be reimbursed for the legal costs associated with their part of the defense.

Good luck, I know. But until then, they are almost stupid if they don't defend them as Fannie/Freddie are also part of the lawsuit.



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Now Gandy, I am sure you will spin it somehow but thats the truth.
It seems you skipped right over this..........
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Originally Posted by AK Gandy View Post
As distasteful as it is,
In other words............I don't like it either.

And the only "spin" I'm providing, is the part of the story that Faux News didn't.

What a surprise.

For anyone who is actually interested in knowing the whole picture, here is a much better article.

Lawsuit (click here)

Quote:
Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage-finance companies and their former top executives in lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at Congress' request.

The bulk of that spending - $132 million - went to defend Fannie Mae and its officials in securities lawsuits and government investigations of accounting irregularities that occurred years before the subprime-lending crisis erupted. The legal payments show no sign of abating.

Documents indicate that taxpayers have paid $24.2million to law firms defending three of Fannie's former executives: Franklin D. Raines, its former chief executive who was budget director under President Clinton; Timothy Howard, its former chief financial officer; and Leanne Spencer, its former controller.

Late last year, Rep. Randy Neugebauer, R-Texas, and now chairman of the oversight subcommittee of the House Financial Services Committee, requested the figures from the Federal Housing Finance Agency. It is the regulator charged with overseeing the mortgage-finance companies.

It is typical for corporations to cover such fees unless an executive is found at fault. If these former executives are found guilty, the government can try to recoup the costs, but that could prove challenging.

Because Fannie Mae and Freddie Mac were taken over by the government in September 2008, their losses stemming from bad loans have mounted, totaling approximately $150 billion in a recent reckoning.

Well before the credit crisis compelled the government to rescue Fannie and Freddie, accounting irregularities had engulfed both companies. Shareholders of Fannie and Freddie sued to recover stock losses incurred after the improprieties came to light.

Raines retired in December 2004, and Howard resigned at the same time. Spencer left her position as controller in early 2005.

The following year, the Office of Federal Housing Enterprise Oversight, then the company's regulator, published an in-depth report on the company's accounting practices, accusing its top executives of taking actions to manipulate profits and generate $115 million in improper bonuses.

The office sued Raines, Howard and Spencer in 2006, seeking $100 million in fines and $115 million in restitution. In 2008, the three settled with the regulator, returning $31.4 million in compensation.

Fannie Mae also settled a fraud suit brought by the U.S. Securities and Exchange Commission without admitting or denying the allegations; the company paid $400 million in penalties.

Attorneys for the three former Fannie executives did not respond to requests for comment.

After the government moved to back Fannie and Freddie, the Federal Housing Finance Agency agreed to continue paying to defend the executives, with taxpayers covering the costs.

Fannie Mae's bylaws detail actions that prevent indemnification for officers and directors. Those include a person's breach of the duty of loyalty to the company or its stockholders, actions taken that are not in good faith, or intentional misconduct.

Asked why the Federal Housing Finance Agency has not cut off funding for these mounting legal bills, Edward DeMarco, its acting director, said: "The advancement of such fees is in the best interest of the conservatorship."

Although the figures are not broken down by case, the largest costs are being generated by a lawsuit centering on accounting improprieties that erupted at Fannie Mae in 2004. That lawsuit, a shareholder class action brought by the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio, is being heard in federal court in Washington.



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Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #5 of 16 (permalink) Old 01-25-2011, 02:26 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

Thanks for posting that Rick..
post #6 of 16 (permalink) Old 01-25-2011, 02:46 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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It is typical for corporations to cover such fees unless an executive is found at fault. If these former executives are found guilty, the government can try to recoup the costs, but that could prove challenging.
Challenging is the key word there Candyman. How much more will that cost taxpayers? 10 to the X power? I think your head is still spinning. You are grasping at air.
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post #7 of 16 (permalink) Old 01-25-2011, 02:52 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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Thanks for posting that Rick..
Your very welcome Mark.

Some people obviously either didn't bother reading it.....or haven't been told what to think about it by Savage.

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Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #8 of 16 (permalink) Old 01-25-2011, 03:00 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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Originally Posted by AK Gandy View Post
Your very welcome Mark.

Some people obviously either didn't bother reading it.....or haven't been told what to think about it by Savage.

.
I read the article both from fox and your snippet. Wow what a difference. The Fox people are so crafty and sneeky????
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post #9 of 16 (permalink) Old 01-25-2011, 03:05 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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Originally Posted by Binderpower View Post
The Fox people are so crafty and sneeky????
No.

Just incomplete.

Exactly like some people.

.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #10 of 16 (permalink) Old 01-25-2011, 03:10 PM
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Re: U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

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Originally Posted by AK Gandy View Post
No.

Just incomplete.

Exactly like some people.

.
Remember, you gotta keep your chin up their sunshine. You'll get it together someday. stop being so hard on yourself.
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