Monday, June 26, 2006
Media - A $40 billion scandal
We're not hearing much about this.
This article speculates as to the reason we're not...
This article speculates as to the reason we're not...
Dan Gainor has the story at the Washington Times:
"Welcome to Fannie Mae, the government-sponsored mortgage giant. As part of a scandal that's been running nearly two years, Fannie Mae has "misstated earnings" to the tune of $10.8 billion. That's some tune.
So far, the Fannie fiasco has cost Chief Executive Officer Franklin Raines and several other top executives their jobs. The stock has dropped from nearly $80 a share to around $50 -- roughly $30 billion in lost value. And the company recently settled with the federal government and agreed to pay $400 million in fines, stemming from allegations the firm fiddled with the books to ensure bigwigs got performance bonuses.
To top it off, the Fannie Mae leadership was quite well-connected in D.C., especially to the Democratic Party."
