This morning at CNBC.com, Reuters news services is reporting that the Department of Justice has dropped charges against Fannie Mae and has concluded their investigation. Fannie Mae was "fined" $400 million.
"The Justice Department probably decided that there was little to be gained by bringing charges against the company because that would only punish shareholders, who have been punished enough," said Josh Rosner, a housing analyst with Graham Fisher & Co. in New York. "But that does not mean that former executives are not being scrutinized."My last post a couple weeks ago about this scandal... I recall thinking and suspecting that some very very high level talks would take place behind closed doors. Seems like my hunch had some merit.
Fannie Mae gets a pass. Unbelievable. Franklin Raines and all his former Fannie Mae executives under him—do you really think this guy will get prosecuted? Time will tell, but when this guy is connected to Washington the way he is, it's going to be difficult.