Raines Advising Ex-AOL Honcho

Former Fannie Mae chairman and chief executive Franklin Raines, who was forced into retirement in December, is serving as adviser to Revolution LLC, a new Washington-based venture capital firm founded by ex-America Online chairman Steve Case.According to a report in the Washington Post, Mr. Raines is serving as an unpaid "informal" adviser to Revolution. The former Fannie Mae CEO, who keeps an office at Revolution, did not return a telephone call by MortgageWire's deadline. Mr. Raines, a former AOL director, is a general partner in the Washington Baseball Club, which is trying to purchase the Nationals. The WBC continues to list him as Fannie's chairman and CEO even though he has not worked there in six months. Fannie Mae, meanwhile, is expected to restate earnings by $9 billion to $12 billion, and its accounting practices are under investigation by several federal agencies, including the Justice Department.