first African American to head a Fortune 500 company, Franklin D. Raines takes over Fannie Mae, The

Black Collegian, Feb 1999 by Farmer, Paula

The most people began the New Year setting goals and making resolutions, Franklin D. Raines was hitting the ground running and accomplishing some of the loftiest goals. The former director of the Office of Management and Budget (OMB) at the White House officially took the reigns as chairman and CEO of the Washingtonbased Fannie Mae Corporation last April where he had earlier served as vice chairman. Fannie Mae is in the top 50 of the Fortune 500 with $27.8 billion in revenues. Raines, new position makes him the first African-American CEO of a major Fortune 500 corporation. Following close behind are Ken Chenault of American Express, Anne Fudge of Maxwell House, Richard Parsons of Time Warner and Barry Rand of Xerox's U.S. Marketing Group.

Although such a rise to power is often humbling to the confident, for the understated 49-year-old executive, it is not unusual. Raines, who grew up in Seattle, has been ambitious and accomplished from youth, a source of pride to his working-class parents and the African-American community.

Raines' hard work ethic was acquired from his parents, who worked as custodians. Raines is not too shy to let people know that he is not only a graduate of Harvard College and Harvard Law School, but also a graduate of Aid to Families with Dependent Children, or welfare. "I grew up in a working-class family, an intact family. My parents raised seven of us, a girl and six boys, one a cousin who grew up with us after his mother died. We had all the problems working-class families have," says Raines.

His educational encouragement came from several sources throughout his academic career, but most notably from his high school debate team coach, Eva Doupe. "I remember in my senior year finding myself torn between love and responsibility to the football team as the captain, and the debate team as state champion," relates Raines. "One day there was a football game and a debate tournament on the same day and both coaches went into a room to decide what I was going to do. As a result, I ended up competing in the debate tournament. This was an example of what Ms. Doupe was made of and the impact she had on me.

In honor of Ms. Doupe, Raines ultimately set up a scholarship in her name. The scholarship focuses on students who want to become public school teachers. Although athletics meant a lot to Raines growing up, he excelled in academics. Eventually he went on to garner undergraduate and law degrees from Harvard. He became a Rhodes Scholar at Oxford University.

The president of the HBO Home Video Division, Henry McGee, is a former Harvard classmate and long-time friend of Raines. He thinks, academic and professional accomplishments aside, his friend's upstanding character makes him the special person that he is. "Frank genuinely cares for other people and that comes across in pretty much everything he does," notes McGee. "People realize that he has a seriousness of purpose and concern that wins them over to his cause."

If attention to family life influences professional outlook, then Raines' tenure at Fannie Mae will be bright. "Frank is a hard worker, but not at the cost of his family life," reveals McGee. "He believes in a balance and that makes for success in all areas of his life. He is also a great romantic as he proved by proposing to his wife again during a recent trip to Paris. He is very close to his three daughters."

Beyond his roles as corporate executive, husband and father, Raines knows that he is a role model for young African-American students, including those who aspire to overcome the racial challenges in politics and in the corporate world. Raines comments, "I don't always feel like a role model myself, but I'm constantly reminded by those who look up to me that I am. People come up to me and say I heard you give a speech and it sure had a big impact on me. There are young people, particularly young AfricanAmerican males, who are looking at me and seeing a way that they can pattern their careers and lives." That type of flattery never ceases to amaze Raines and reveals a sincere humility that is disarming.

To be sure, the same elements of Raines' strength of character and accomplishments that have had a notable impact on today's youth and garnered him much respect during his service to the Clinton Administration will need to be applied to his new duties as Fannie Mae's chief.

Taking on corporate duties is nothing new to Raines. His resume suggests that he functions just as easily in the corporate arena as he does in political and social arenas. After graduating from law school, he practiced law in Seattle with a private firm for a modest salary. Eventually, he made the transition into politics by joining the Jimmy Carter Administration as an assistant director of the White House Domestic Policy Staff. During that time, he tackled such issues as welfare reform, food stamps and social security.

Soon after the end of the Carter Administration, Raines moved into the corporate world, taking a position with a New York investment bank, and from 1991-1996, he served as vice chairman for Fannie Mae. As vice chairman, Raines made his mark. He developed mortgage standards and cut some of the red tape associated with processing mortgages. He is credited with helping to create an electronic system that aids loan counselors with repairing credit for prospective home buyers.