A growing accounting scandal at mortgage giant Fannie Mae prompted the resignation of Franklin Raines last week as its chairman and chief executive. The departure Raines, who served as President Bill Clinton’s budget director, drew cheers from the National Legal and Policy Center, which filed a shareholder proposal seeking an end to Fannie Mae’s support of Jesse Jackson. “Raines made the mistake of politicizing Fannie Mae,” said Peter Flaherty, the NLPC’s president. “Bankrolling Jesse Jackson does little to advance Fannie Mae’s fortunes on Capitol Hill or with the public.”
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