An Ol' Broad's Ramblings
And The Hits Just Keep On Coming
Taxpayers footing legal bills for former Fannie execs
Many U.S. taxpayers are unaware that they are now paying for the legal bills of three top former executives for government-run mortgage firm Fannie Mae.
Former Fannie Mae executives Franklin Raines, J. Timothy Howard, and Leanne Spencer are accused of cooking the books to increase their bonus compensation — yet the three claim they had nothing to do with the accounting irregularities that were discovered at the mortgage giant in 2005. Shareholders sued the executives because Fannie’s stock collapsed when those accounting problems emerged. But under the terms of their employment contracts, Raines, Howard, and Spencer were indemnified from having to pay legal bills that arose out of shareholder lawsuits.
How much more are we going to take?
Now that Fannie has been under government control for a year, those $6.3 million in legal bills now belong to American taxpayers. New York Times business columnist Gretchen Morgenson says it is unfortunate that the former Fannie executives are evading punishment.
I’d really like to know what crime we, the taxpayers, committed to be stuck with a legal bill larger than a good majority of us will never seen in our lifetimes? If these weasels found ways to manipulate the numbers to increase their bonuses, shouldn’t they have plenty of money to pay their own freakin’ bills? This is not my problem. I didn’t break any laws. I didn’t try to screw over anyone. I’m hoping you haven’t either. So, why are WE getting the shaft? Again?
