Directors of Fannie Mae to Discuss Executives' Fates

New York Times ^ | December 18, 2004 | Stephen Labaton

[tvn]

The directors of Fannie Mae, the big mortgage finance company, will meet Sunday to consider the fate of two senior executives who signed off on financial statements that violated accounting rules, people close to the company said Friday.

The two executives, Franklin D. Raines, the chairman and chief executive, and J. Timothy Howard, the chief financial officer, certified financial statements that the Securities and Exchange Commission on Wednesday ordered to be restated because of significant violations in accounting rules over their treatment of derivatives and prepaid loans.

Fannie Mae said in November that a restatement would force it to recognize $9 billion in losses over the last three and a half years, wiping out more than a third of its profits over that period. Regulators could also force the company to raise its capital levels by billions of dollars, either by selling some of the mortgages it holds in its portfolio or through a securities offering.

[tvn]

This means a government created and supervised corporation is the first guilty of vioilating the financial reporting rules set by the Sarbanes-Oxley law. There should be a full investigation of Fannie Mae, its officers and its board : Officers and Board Members: FRANKLIN D. RAINES, Chairman of the Board & Chief Executive Officer,( Raines headed OMB under Clinton) H. MUDD, Vice Chairman & Chief Operating Officer, TIMOTHY HOWARD, Vice Chairman & Chief Financial Officer, Board Members: STEPHEN B. ASHLEY, Chairman & Chief Executive Officer,The Ashley Group/ KENNETH M. DUBERSTEIN, Chairman & Chief Executive Officer,The Duberstein Group, Inc./ THOMAS P. GERRITY , Professor,The Wharton School,University of Pennsylvania/ ANN KOROLOGOS (Mrs. John McLaughlin, Host, The McLaughlin Group) ,Vice Chairman, RAND Board of Trustees/ FREDERIC V. MALEK, Chairman, Thayer Capital Partners/ DONALD B. MARRON, Chairman & Chief Executive Officer,Lightyear Capital (former Chairman, PaineWebber) / JOE K. PICKETT, Former Chairman & Chief Executive Officer, HomeSide International Inc./ LESLIE RAHLPresident & Founder Capital Market Risk Advisors, Inc./ H. PATRICK SWYGERT President,Howard University/ JOHN K. WULFF, Chairman of the Board,Hercules Incorporated.

NOTE: Recently Resigned Fannie Mae Vice Chairman JAMIE S. GORELICK, former member of Clinton Justice Department and member of 9/11 Commission

[nanak]

full investigation of Fannie Mae = US economy goes Niagara falls

[Excuse_My_Bellicosity]

Gee, why isn't the media screaming about corporate greed and government enabling such behavior. Oops, it's because every DemonRat under the sun is in bed with Fannie Mae. They had nothing to say about Global Crossing, either. The media blackout continues.

[bvw]

Martha the Decorator doesn't belong in the gaol, but those boy and girl slugs do.