Wednesday, December 29, 2004

We Guess This News Wasn't Fit To Print

Odd that the newspaper of record doesn't have a word about former Clinton Administration official Franklin Raines' golden parachute, but London's Telegraph does:

Franklin Raines, who resigned as chief executive of Fannie Mae last week after the mortgage finance provider admitted to four years of extensive accounting abuse, will be paid $600,000 for the next six months and then receive an annual pension of $1.37m for the rest of his life.

....Mr Raines is also in line to leave with $5.8m in stock options and $8.7m in deferred compensation and medical and dental insurance to be paid through to 2020.

Mr Raines, who has left the company but remains on the payroll for the next six months, could still collect a bonus for 2004. Fannie Mae said it was considering the impact of its pending financial statement, which could be in the order of $9billion, on executive bonuses. The restatement could grow once auditors begin a fresh investigation of the company's books.

Tim Howard, chief finance officer, resigned alongside Mr Raines and the auditors KPMG were sacked. Last year, Mr Raines made $20m in salary and bonuses. Some lawmakers have suggested he return part of the money.

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