Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In 2002 John Snow, then Secretary of Treasury, appeared before Barney and his band of clowns and tried to get the committee to adopt major changes to the functioning of Fannie. Barney blew him off in a successful effort to cover up for the accounting fraud perpetrated by Franklin Raines and his cohorts.  Raines got a bonus and we got a financial crisis. Barney would not allow Fannie to be touched and insisted that we needed more home ownership, especially by people who could not afford to be owners. So began the subprime disaster.

Today there is no effort to change things at Fannie. There is a major effort to change banking and Wall St, which is needed, but Fannie goes on losing $20 billion of taxpayer hard earned money every month. 46% of all loan modifications by Fannie are going into default again. The cost when all done will be close to $400 billion of taxpayer money vs TARP which all of the large banks repaid with an 8% profit to the taxpayers. Yet who gets called names. Who gets hauled before TV cameras and accused of misdeeds. Who does the media make to look like criminals. Not Franklin Raines or Fannie executives of the past.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.