/* Fannie Mae securitization of subprime mortgages */
[[Fannie_Mae#Franklin_Raines_era|Franklin Raines]], Vice Chairman of Fannie Mae, was appointed by Clinton as Director of the the [[Office of Management and Budget]] (OMB) in 1996; in 1999, he returned to Fannie Mae as CEO. One of his first acts was to lower Fannie Mae's underwriting guidelines and begin purchasing subprime mortgages under Clinton's National Homeownership Strategy and the Community Reinvestment Act.<ref>[http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html Fannie Mae Eases Credit To Aid Mortgage Lending,] Steven A. Holmes, ''New York Times'', September 30, 1999.</ref> Raines was named (along with Bill Clinton) by ''[[Time magazine]]'' on it's list of ''25 People to Blame for the [[Financial Crisis of 2008]]''.<ref>[http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877335,00.html The good intentions, bad managers and greed : behind the meltdown, Blameworthy : Frank Raines], ''Time magazine''. </ref>
Clinton hired [[Peter Orszag]] as Special Assistant to the President for Economic Policy in 1997; as concern grew over Raines management of Fannie Mae, Raines hired Orszag to reassure investors over the safety of Fannie Mae's purchase and securitization of subprime mortgages. Orszag made the fantastic claim Fannie Mae's risk of insolvency was 1 in 500,000, and more likely 1 in 3 million. After the collapse of Fannie Mae, Barack Obama
later made Orzsag his Budget Director.
When Raines took the appointment at Fannie Mae, Clinton replaced his services at OMB with [[Jack Lew]], who worked in the Clinton White House throughout all eight years. When he left the administration, Lew secured a job at Citibank as Chief Operations Officer on Robert Rubins recommendation. Lew received $1 million in salary and a $950,000 bonus - after it failed and was bailed out in 2009.<ref>[http://www.huffingtonpost.com/2013/01/11/jack-lew-rubin-citigroup_n_2458142.html Jack Lew's Robert Rubin Connection Is A Bad Sign For Financial Reform,] Mark Gongloff, ''Huffington Post'', 01/11/2013. </ref> From there Barack Obama re-hired him as Budget Director to replace Orszag, promoted him to Chief of Staff, and later Secretary of the Treasury.<ref>Lew was point man on Obama's [[Budget_sequester#2013_Obama_sequester|budget sequester]] where he misled the press and public on the origins and nature of the deal.</ref>