The Real Deal Miami

Taxpayers footing $6M bill for disgraced Fannie execs

September 08, 2009 09:43AM

In the wake of massive corruption allegations against three former Fannie Mae executives, taxpayers have footed the legal bills for the fallen agency chiefs, according to a new report from Florida representative Alan Grayson. Between Sept. 6, 2008 and July 21 this year, taxpayers spent over $6 million in defense fees for top executive Franklin Raines, CFO Timothy Howard and agency controller Leanne Spencer. After allegations of misconduct emerged, Fannie Mae was required to cover all three officers’ legal fees — and the bills were passed on to taxpayers. Grayson said that the scenario is inscrutable. “I cannot see the justification of people who led these organizations into insolvency getting a free ride,” Grayson said. “It goes right to the heart of what people find most disturbing in this situation — the absolute lack of justice.”