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3 Financial Execs Obama's Special Unit Should Target

1. Franklin Raines, former CEO, Fannie Mae (FNMA.OB).

Could Raines be targeted by the Obama Administration? Though John McCain's presidential campaign tried to paint Raines as an Obama adviser during the 2008 election, Glenn Kessler, who writes The Washington Post's "Fact Checker" column, found those claims dubious.

Fannie Mae and its cousin, Freddie Mac (FMCC.OB) are Republicans' favorite punching bags when it comes to finding institutions to blame for the financial crisis. But though they are mainly trying to score political points since lots of Fannie and Freddie leaders, supporters and beneficiaries have been Democrats, that doesn't mean they're wrong.

Fannie and Freddie both stink of corruption and graft, but Fannie, because it was larger, stunk worse. In 2004, it was forced to restate past years' earnings by $6.3 billion. Fannie's regulator found that Raines earned $90 million between 1998 and 2004, with $52 million of that being directly tied to Fannie meeting its earnings targets, according to the book "All the Devils Are Here."

While the book offers plenty of evidence Raines was the victim of a political witch hunt, it certainly doesn't excuse Raines. "Whether because of sloppy accounting or something less excusable, Fannie gave its regulator enough rope to hang it with."

-- Written by Dan Freed in New York.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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