Franklin Raines, the former chief executive officer of Fannie Mae says the Bush administration helped orchestrate an accounting scandal that cost him his job and that he wants to use White House documents to defend himself in a shareholder lawsuit.
Raines, who served as President Clinton's budget director, argues in court documents that the Bush administration felt the government-chartered agency wielded too much power in the mortgage industry. His attorneys say the White House pushed regulators to weaken Fannie Mae and triggered a $6 billion accounting scandal.
This past July Raines subpoenaed the White House for documents relevant to the case. Justice Department lawyers will go before a federal judge immediately to fight it.
Business Briefs, the Miami Herald, December 20, 2007, 1C.