5 Jun 2008
And Bob Johnson was head of Fannie Mae, and instituted all kinds of new policies that made that institution ripe for misuse. And misused it was, by Franklin Raines, who managed to take the short-term profits-view, and with Johson's "aggressive" strategy in place, managed during his tenure as Johnson's vetted replacement to cook the books and thereby grab for himself nearly $90 million. In a plea-bargain a few months ago, in which the government went very very lightly on him, he agreed to pay back....oh, about $20 million. So he's kept most of the loot.
You can and should find out a lot more about Franklin Raines, and about the changes that Bob Johnson made at Fannie Mae, and the new policies that help explain how the phenomenon of Raines was made possible.