Federal regulators on Tuesday are expected to say Fannie Mae will pay $400 million for using bad accounting to manage earnings and trigger bonuses, according to sources briefed on the plan. The Office of Federal Housing Enterprise Oversight (OFHEO) and the Securities and Exchange Commission will announce the fine under a deal to settle charges related to the mortgage giant's nearly $11 billion accounting scandal, the sources said. The agreement will come as OFHEO releases findings of a nearly three-year probe into Fannie's problems in a report sources say will be tougher than a previous probe that largely insulated current management and the board from blame. (Reuters, Tuesday)
Another Frankenstein’s monster created by the state.
FEE Timely Classic
Government in Business by Murray N. Rothbard