Posted on 09/30/2004 9:29:54 AM PDT by AdamSelene235
NEW YORK (Reuters) - The Justice Department has opened an investigation of possible accounting fraud at Fannie Mae, the Wall Street Journal reported on Thursday, after a federal regulator said the mortgage giant may have manipulated its earnings targets.
The Journal reported that the investigation is still in the preliminary stages. Fannie has been under fire since the Office of Federal Housing Enterprise Oversight, or Ofheo, accused the company of improper accounting that allowed senior executives to pocket multimillion-dollar bonuses.
According to the newspaper, officials have said that some Fannie Mae executives may have misled regulators, which in some cases would be an added criminal offense. Because of the nature of Ofheo's disclosures, the Justice Department concluded that it demanded an investigation, the Journal added.
Ofheo referred its report to prosecutors last week, lawyers close to the case told the Journal.
The regulator's report raised questions of possible accounting manipulations involving financial instruments used to hedge risk, and expensing of costs associated with the company's core business of buying home mortgages from lenders around the country.
No one was immediately available at Fannie Mae or the Justice Department to comment on Thursday.
Excellent.
This is a nest of Democrat sinecures.
Fannie? My butt!
Good!
Wonder if the Texas Rangers, the real rangers not the baseball team, could loaned for the investigation.
A letter to my CongressCritter in case anybody else would like to use it:
Sir,
The OFHEO recently reported that the Government Sponsored Enterprise Fannie Mae deliberately falsified its earnings in order to pay multi-million dollar bonuses to its executives.
Represenative Baker put it best when he recently stated, "The most disgusting revelation is that accounting tricks were used by a government-chartered enterprise with a government-sponsored public mission and a government-bestowed massive subsidy purely for personal gain and to pad executive compensation," Rep. Richard Baker (R., La.)
These entities have artificially inflated the value of American real estate by pumping ridiculous amounts of easy money into the mortgage market. Now, thanks to the collusion of many members of Congress, the entire financial system is at risk. (see Armando Falcon's OFHEO report on systemic risk).
When will the members of Congress who aided the reckless growth of the GSEs in exchange for campaign funds be held accountable for their actions?
Regards,
This will be the biggest story of 2005.
The title caused me some concern, I must say. And even some hope for pictures...
Let's hope gorelick get her Just Deserts on this one.
Isn't (or wasn't) 9-11 Commissioner Jamie Gorelick one of the tallest hogs at the trough over at Fannie Mae?
Fannie Mae was also involved in numerous SCAMS with General Developement (now defuct) in the state of Florida. It was part of mass fraud using over valued property appraisals with Fannie Mae's blessing. This was a full blown operation untill around early 1980's.
Cities included Port Charlotte, Port Marion, Port St. Lucie etc.
The democrat albatross.
Nice headline... I'm speechless.
Ugh. Don't start celebrating yet. The fallout could be significant and affect you and I personally.
I came to this thread thinking it was about the
Kerry/Nam wound regarding rice.
Yeah, that's some title. Thank God Reuters thought to put the word "criminal" in there, eh?
THE FANNIE MAE SCANDAL WILL TURN OUT TO BE WORSE THAN ENRON!
THESE PEOPLE MANIPULATED THE ACCOUNTING OF FANNIE MAE IN SUCH A WAY AS TO ALLOW IT TO PAY THE FOLLOWING SALARIES AND BONUSES IN 1998. WHAT THEY'VE BEEN DOING EVER SINCE 1998, ONLY GOD KNOWS!!! THE SCANDAL NVOLVES SOME OF THE FOLLOWING FANNIE MAE EXECUTIVES, MOST CLINTON APPOINTEES:
James A. Johnson, Chairman and Chief Executive, who, beginning in 1968, received $966,000 in salary and a $ 1,932,000 bonus. He is a close Kerry adviser and likely to be Secretary of the Treasury in a Kerry administration!!!
Jamie Gorelick, of 9/11 Commission fame, a Janet Reno lieutenant and advocate of separation of FBI from CIA, etc., that made it easy for terrorists to operate within us. She received $ 567,000 in salary plus a $ 779,625 bonus!!!
Other recipients of this unbelievable largesse with our money:
Franklin D. Raines, Chairman and chief executive designate $ 783,839 in salary and a bonus of $ 1,109,589.
The New York Times and/or The New York Post reported recently that he had cleared $ 20,000,000 this past year!
J. Timothy Howard, Executive Vice President and Chief Financial officer. He received $ 395,000 in salary and a $ 493,750 bonus!!!
Robert J. Levin, who as Executive vice president received $ 395,000 in salary and a $ 493,750 bonus!!!
THE NEW YORK TIMES IS RELUCTANTLY REPORTING THIS SCANDAL IN ITS BUSINESS SECTION, BEGINNING 9-24-04!!!!!
Yeah, LOL... reminds me of that old headline "Prosecutor releases probe into undersheriff..." ;0)
Nice to see that the Justice Department is finally catching a clue.
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