Fannie Mae To Withhold $44M In Bonuses

Law360, New York (February 21, 2007, 12:00 AM EST) -- Employees of Fannie Mae will miss out on $44.4 million in bonuses this year, after the mortgage giant revealed it would use the funds to cover some of the $6.8 billion deficit caused by the massive accounting fraud scandal at the company.

Fannie Mae said that instead of paying out cash and shares to current and former executives, the company will record the funds as income, since the previously recorded bonus amounts had been based on fraudulent earnings reports.

The new policy will affect payments to...
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