Report Faults Fannie Mae Execs for Accounting Woes

Law360, New York (February 23, 2006, 12:00 AM EST) -- An internal report released Thursday found that former Fannie Mae executives went to great lengths to cast company earnings in a favorable light over the years, even intentionally boosting executive bonuses at one point.

After a 17-month investigation led by former New Hampshire Senator Warren Rudman, the mortgage-buying giant abused generally accepted accounting principles in “virtually all of the areas” examined, the report stated. The besieged company is currently trying to recover from an $11 billion accounting scandal.

In light of the critical report commissioned by...
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