Raines Quits As Budget Director
OMB director to return to Fannie Mae as chairman, CEO
WASHINGTON (AllPolitics, April 14) -- Franklin Raines resigned Tuesday as director of the Office of Management and Budget for a job in the private sector.
After serving as President Bill Clinton's budget chief for a year and a half, Raines has accepted the position of chairman and chief executive officer of mortage giant Fannie Mae.
Clinton said he accepted the resignation with regret, but Raines was leaving for a "once-in-a-lifetime opportunity."
In an announcement on the South Lawn, the president praised Raines, who worked with congressional leaders to help fashion last year's balanced budget agreement, as "a brilliant OMB director."
At Tuesday morning's event Clinton and Raines declined to specify what Raines would do next. When asked what job he was leaving for, Raines only smiled and told reporters, "Stay tuned."
A well-respected member of the president's inner circle of advisers, Raines was considered a front-runner to replace White House Chief of Staff Erskine Bowles earlier this year until Bowles decided to stay in that post.
Clinton named Raines' deputy, Jack Lew, as Raines' successor, calling him a "true and dedicated public servant."
The Senate must confirm the president's choice. Accepting the nomination, Lew said, "We look forward to continuing our effort to maintain sound fiscal policy."
Raines will succeed James A. Johnson as chairman and chief executive officer of the Federal National Mortgage Association, or Fannie Mae. During the transition, he will act as the group's chairman-designate. Raines worked as vice chairman of the company before being confirmed as the head of the OMB in September 1996.
The Associated Press contributed to this report.
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