Fannie Mae to Pay Ousted CEO $1.3 Million

Fannie Mae to Pay Ousted CEO $1.3 Million

From the article:

Franklin Raines, who was forced out as Fannie Mae's chief executive after five years, is due to receive a pension of $1.3 million a year for life, according to an agreement with the mortgage lending giant.

In documents filed Monday with the Securities and Exchange Commission, Fannie Mae also revealed that Raines has deferred compensation of $8.7 million to be paid out through 2020 and owns more than $5.5 million in the company's stock.

Why was he forced out?

The restatement of possibly $9 billion of past profits could force the company to take a variety of actions to deal with what OFHEO said last week was a "significantly undercapitalized" balance sheet, meaning the regulators believe the company lacks the money to cover potential losses.

Fraud, in other words.