Franklin Raines

Franklin Raines (July 2002)

Franklin Delano Raines (born January 14, 1949 in Seattle , Washington ) is an American business manager and former director of the Office of Management and Budget (OMB).

biography

Promotion to director of OMB

After attending Franklin High School , he studied government at Harvard University and graduated in 1971 with a Bachelor of Arts (BA Government). He then studied at Oxford University on a Rhodes scholarship before completing a postgraduate degree in law at Harvard University's Law School in 1976 with a Juris Doctor (JD). During his studies, he switched from the Republican to the Democratic Party and was involved in the national board of the Urban League , one of the oldest Afro-American freedom movements.

He later moved to the private sector as a manager and was a member of the boards of directors of Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), a pension fund for academics , Pfizer , Pepsi and AOL, and most recently from 1995 to 1996 of Boeing .

In 1991 Raines was elected to the American Academy of Arts and Sciences . On September 13, 1996, he was appointed Director of the Office of Management and Budget by US President Bill Clinton and held this position in the Clinton Cabinet until May 21, 1998.

He later also supported the candidacies of Democratic politicians such as Al Gore in the 2000 presidential election in the United States and Barack Obama in the 2004 Senatorial Election for Illinois .

CEO of Fannie Mae and real estate scandals

After retiring from government, Raines, who is also a member of the Council on Foreign Relations and the American Academy of Arts and Sciences , served as Fannie Mae's Chief Executive Officer from 1999 to 2004 .

Due to the real estate boom in the US that had been going on since the mid- 1990s , the financial markets increasingly saw the danger that if real estate prices fell, Fannie Mae could run into serious problems, which, given the size of the debt, led to global turbulence in the financial markets could lead and has meanwhile also occurred. This ultimately led to the fact that in July 2008 the head of the Fed in St. Louis , Wiliam Poole, described Fannie Mae for the first time as " de facto insolvent " and called on politicians to look for rescue options. On July 13, 2008, the US government announced that it would support Fannie Mae and Freddie Mac with billions in loans and stock purchases to prevent bankruptcy . Critics accused Raines of being at least complicit in this situation.

In a lawsuit about his role in this Fannie Mae scandal, he and two other managers agreed to pay a total of 24.7 million US dollars in April 2008 .

Web links

• Franklin Raines in nndb (English)

Individual evidence

1. ^ ARD : "Freddie and Fannie before bankruptcy?" ( Memento from July 11, 2008 in the Internet Archive ) - July 10, 2008
2. ^ Federal Reserve System press release
3. ↑ "Extensive Housing Bill on the home straight. The US Treasury will be able to help Fannie and Freddie ” , NZZ July 24, 2008
4. ^ Fannie Mae CEO Franklin Raines. Don't blame him for the mortgage giant's scandal… yet (October 7, 2004)
5. ↑ BUSINESS WEEK: THE BEST & WORST MANAGERS OF 2004 - THE WORST MANAGERS: Franklin Raines-Fannie Mae (January 10, 2005)
6. ↑ THE SEATTLE TIMES: Franklin Raines to pay $ 24.7 million to settle Fannie Mae lawsuit (April 18, 2008)