Franklin Raines

Franklin Raines was forced out Tuesday as chief executive of mortgage giant Fannie Mae as the nation's second-largest financial institution struggled to deal with revelations of serious financial reporting problems. Raines, 55, said in a statement that he had decided to resign because of his pledge to hold himself accountable if regulators determined the existence of accounting errors.

Franklin Raines, the former chief executive of Fannie Mae, used a special program at mortgage lender Countrywide Financial to receive a below-market rate on a home loan, contrary to sworn testimony he made to Congress in December, according to the top Republican on the House Committee on Oversight and Government. Raines' lawyer, however, disputed Rep. Darrell Issa's characterization of events.

Franklin Raines, who was forced out last week as Fannie Mae's chief executive after five years, is slated to receive a monthly pension of more than $114,000 for life, according to documents the mortgage lending giant filed with the Securities and Exchange Commission. The documents also reveal that Raines has deferred compensation of $8.7 million to be paid out through 2020 and owns more than $5.5 million in Fannie Mae stock.

Franklin D. Raines, the former chairman and chief executive of mortgage giant Fannie Mae, is making a fresh start as an informal advisor to Revolution, a Washington-based holding company launched last month by former America Online Inc. Chairman Steve Case. Raines "is a friend and colleague" of Case's and has had an office at Revolution's headquarters since mid-April, said Malin Jennings, a company spokeswoman. Raines does not hold a title and is not getting a salary.

Franklin D. Raines, the former chairman and chief executive of mortgage giant Fannie Mae, is making a fresh start as an informal advisor to Revolution, a Washington-based holding company launched last month by former America Online Inc. Chairman Steve Case. Raines "is a friend and colleague" of Case's and has had an office at Revolution's headquarters since mid-April, said Malin Jennings, a company spokeswoman. Raines does not hold a title and is not getting a salary.

Franklin Raines, the former chief executive of Fannie Mae, used a special program at mortgage lender Countrywide Financial to receive a below-market rate on a home loan, contrary to sworn testimony he made to Congress in December, according to the top Republican on the House Committee on Oversight and Government. Raines' lawyer, however, disputed Rep. Darrell Issa's characterization of events.

If what goes up must come down, then maybe it was inevitable that Franklin D. Raines' rise through the worlds of business and politics would end. But few who know the soft-spoken businessman envisioned the abrupt landing Raines made days before Christmas when he resigned under pressure as Fannie Mae's chairman and chief executive in the midst of an accounting scandal at the nation's largest mortgage lender.

The former Fannie Mae accountant who raised questions about the mortgage giant's bookkeeping said Wednesday that he took his concerns directly to Chief Executive Franklin Raines in 2002 and asked him to investigate. The disclosure by Roger Barnes, who left Fannie Mae in October 2003, came as Raines and Chief Financial Officer Timothy Howard defended the company's accounting and told Congress that regulators' allegations of earnings manipulation represented an interpretation of complex rules.

The chief executive of mortgage finance giant Fannie Mae, under fire for alleged accounting irregularities at the company, will appear before a congressional panel next week, a Fannie Mae spokesman said. The company announced that Chief Executive Franklin Raines would testify after the House Financial Services Committee said it would authorize its chairman to issue subpoenas to compel witnesses to come before a hearing Oct. 6. Fannie Mae shares fell 71 cents to $66.

Fannie Mae named interim Chief Executive Daniel Mudd as permanent CEO and president, erasing one of many uncertainties surrounding the mortgage funder as its investigation of multibillion-dollar accounting problems unfolds. Mudd, previously chief operating officer, took the top job in December after Fannie Mae's former chief, Franklin Raines, retired as securities regulators questioned the company's accounting and demanded a restatement of results.

If what goes up must come down, then maybe it was inevitable that Franklin D. Raines' rise through the worlds of business and politics would end. But few who know the soft-spoken businessman envisioned the abrupt landing Raines made days before Christmas when he resigned under pressure as Fannie Mae's chairman and chief executive in the midst of an accounting scandal at the nation's largest mortgage lender.

Franklin Raines, who was forced out last week as Fannie Mae's chief executive after five years, is slated to receive a monthly pension of more than $114,000 for life, according to documents the mortgage lending giant filed with the Securities and Exchange Commission. The documents also reveal that Raines has deferred compensation of $8.7 million to be paid out through 2020 and owns more than $5.5 million in Fannie Mae stock.

Franklin Raines was forced out Tuesday as chief executive of mortgage giant Fannie Mae as the nation's second-largest financial institution struggled to deal with revelations of serious financial reporting problems. Raines, 55, said in a statement that he had decided to resign because of his pledge to hold himself accountable if regulators determined the existence of accounting errors.

The former Fannie Mae accountant who raised questions about the mortgage giant's bookkeeping said Wednesday that he took his concerns directly to Chief Executive Franklin Raines in 2002 and asked him to investigate. The disclosure by Roger Barnes, who left Fannie Mae in October 2003, came as Raines and Chief Financial Officer Timothy Howard defended the company's accounting and told Congress that regulators' allegations of earnings manipulation represented an interpretation of complex rules.

Fannie Mae said Tuesday it would withhold $44.4 million in bonuses to former and current executives, including Chief Executive Daniel Mudd. The mortgage finance company will deny the long-term incentive pay to 46 former and current executives, Fannie Mae spokeswoman Janis Smith said. Fannie Mae in December said it overstated earnings from 2001 until mid-2004 by $6.3 billion.