Franklin Raines and Daniel Mudd of Fannie Mae
Fannie Mae and Freddie Mac are the nation’s largest mortgage buyers: Between them, they own about half of the nations $12 trillion in mortgages. Until their recent U.S. takeover, they enjoyed quasi-government status and support, so, of course, Raines and Mudd made sure to enrich shareholders and executives at the public's expense, all while steering the nation on a course of ruin.
Under Raines ('99-'04), Fannie began pushing subprime mortgages onto those who couldn't afford them. Under Mudd ('05-'08), Fannie began purchasing securities backed by those same subprime mortgages. These were the securities whose inevitable collapsed ruined the world. They made the loans that made up the securities that made up the made up earnings that made up their very real pay.
How real? Mudd earned about $80 million working at Fannie. Raines got a $148 million severance and a mortgage from the "Friends of Angelo" list. He also oversaw an accounting scandal that forced Fannie to restate three years of false earnings reports. Raines paid a small fine and Mudd is now CEO of Fortress Investment Group. Neither Fortress nor a fine, our astute readers will note, is jail.