Fannie Hit with New Charges of Accounting Irregularities: Will It Trigger Restatements and Management Changes?
September 24, 2004
Federal regulators dropped a bombshell on Fannie Mae this week with a new report that charges the government-sponsored enterprise with widespread accounting irregularities that were allegedly used to smooth out earnings as well as maximize bonuses paid to top executives. Significantly, the latest charges, contained in a preliminary 198-page report released by the Office of Federal Housing Enterprise Oversight, appear more serious than those leveled at fellow GSE Freddie Mac a year ago. And it remains