Sunday, September 6, 2009

between 1998 and 2004, senior executives at Fannie manipulated its results to hit earnings targets and generate $115 million in bonus compensation.

Fannie had to restate its financial results by $6.3 billion.

In the rescue operation, the Treasury agreed to pony up as much as $200 billion to keep Fannie in the black, coughing up cash whenever its liabilities exceed its assets.

Treasury will, by Sept. 30, have handed over $45 billion to shore up the company’s net worth

Almost two years later, in 2006, Fannie’s regulator concluded an investigation of the accounting with a scathing report. “The conduct of Mr. Raines, chief financial officer J. Timothy Howard, and other members of the inner circle of senior executives at Fannie Mae was inconsistent with the values of responsibility, accountability, and integrity,” it said.

Fair Game - They Left Fannie Mae, but We Got the Legal Bills - NYTimes.com

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