Richard S. Carnell, an associate professor at Fordham University Law School who was an assistant secretary of the Treasury for financial institutions during the 1990s, questions why Mr. Raines, Mr. Howard and others, given their conduct detailed in the Housing Enterprise Oversight report, are being held harmless by the government and receiving payment of legal bills as a result.<\/p>\n
\u201cTheir duty of loyalty required them to put shareholders\u2019 interests ahead of their own personal interests,\u201d\u009d Mr. Carnell said. \u201cHad they cared about the shareholders, they would not have staked Fannie\u2019s reputation on dubious accounting. They defied their duty of loyalty and served themselves. At a moral level, they don\u2019t deserve indemnification, much less payment of such princely sums.\u201d\u009d<\/p>\n