Wednesday, December 22, 2004


The CEO and COO of Fannie Mae are resigning because of accounting irregularities that go back to 1998. The CEO - Mr. Raines - was the head of Clinton's OMB. Fannie Mae is accused of using illegal accounting gimmicks to boost profits and enable executives and members of the Board of Directors to reap HUGE bonuses. Jamie Gorelick - a Clinton appointee and CONTROVERSIAL member of the 9/11 Commission - was another Left-wing Democrat Fannie Mae Board member, and Vice-Chair, who received millions of dollars in salary and bonuses. SHE SHOULD RESIGN TOO - IN DISGRACE!

Congress is still investigating the scandal - which so far has found that Fannie Mae used lot of illegal "ENRONIAN" gimmicks (ENRON... remember that - it was ANOTHER Clinton Bubble!).

Fannie Mae's stock has lost $11 BILLION in market value since the accounting fraud was discovered... Uh-Hum: on Bush's watch. (For more on Bubba's Bubbles click HERE.)

And more

US regulators are set to investigate possible violations of the Sarbanes-Oxley legislation on accounting and corporate governance by Fannie Mae's former senior management. The Securities and Exchange Commission, the chief US financial regulator, is expected to determine whether Franklin Raines, former chief executive, and Timothy Howard, former chief financial officer, infringed the legislation's requirements to certify the accuracy of its accounts. Mr Raines and Mr Howard, who were ousted by Fannie Mae's board on Tuesday, certified that its 2002 and 2003 accounts "fairly present in all material respects" the company's financial condition in signed statements filed with the SEC.

Last week Donald Nicolaisen, SEC chief accountant, ruled that the US mortgage finance company, had violated US accounting rules between 2001 and mid-2004 and called on it to restate its accounts. Fannie Mae, which agreed to restate, estimated last month that the move could lower its earnings by $9bn .
MORE HERE from the AP: Fannie Mae Turmoil Continues After Ousters


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