Worse than the AIG Spa Vacation (updated) by
The last few days we have been treated to hyperventilation over the outrage of AIG executives attending a lavish sales incentive meeting at a ritzy California spa. I hope that Henry Waxman and his committee will be evenhanded in exposing this outrage. But I bet they will ignore Raines.
Franklin Raines, the Democrat who inflated Fannie Mae earnings in order to pay himself fabulous bonuses, earning $90 million dollars, is feeling none of the real estate market pain he helped to create for so many others. The Washingtonian reports:
In DC: Franklin Raines, the former top man at Fannie Mae, bought a three-bedroom, seven-bath penthouse condominium in the West End’s Ritz-Carlton Residences for $4.9 million. The condo has a rooftop terrace with a hot tub, a butler’s pantry, and three parking spaces. Raines, director of the US Office of Management and Budget under President Clinton, was CEO of Fannie Mae from 1999 to 2004.
Ritz-Carlton Residences, for those unfamiliar with them, are the residential equivalent of the luxury spa where AIG sales champions frolicked for a few days. The lucky owners of condos in these RCR developments have access to room service and other services of a Ritz-Carlton Hotel. Buying a condo like Raines’s is kind of like living permanently in the well-coddled circumstances of a high roller suite at a high end Vegas casino, while having the permanence and customization of home ownership, along, of course, with the tax benefits.
Raines walked away from the mess at Fannie Mae paying only a paltry settlement. Obviously he is well-set for life.
Where’s the outrage?
Michelle Malkin has more
Update from Clarice Feldman: Here is a picture (credit: The Washingtonian) and description of the house Raines is currently trying to sell. I guess he considers the RCR a sacrifice!
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Filed under: The Government Engineered Mortgage Crisis , 700 billion, AIG, bailout, banks, Bear Stearns, Bill Clinton, Community Reinvestment Act of 1977, Democrats, Dow Jones, economic illiteracy, economists, Fannie Mae, Franklin Raines, Freddie Mac, Government engineered mortgage crisis, House of Representatives, Jamie Gorelick, Jim Johnson, Jimmy Carter, minorities, mortgage, President Bush, socialism, stocks, subprime, subprime mortgage collapse
