(FNM to be delisted?) Statement from Daniel H. Mudd, President and CEO, Fannie Mae

Yahoo News ^ | August 9, 2005 | Daniel H. Mudd

[hripka]

WASHINGTON, Aug. 9 /PRNewswire-FirstCall/ -- The following is a statement by Daniel H. Mudd, President and Chief Executive Officer of Fannie Mae:

Last December, the SEC required Fannie Mae (NYSE: FNM - News) to restate our prior financial statements to eliminate the use of hedge accounting and, to the extent material, to correct for errors in our accounting for deferred purchase price adjustments. Our safety and soundness regulator, OFHEO, also raised questions with respect to our accounting, which has led us to undertake a comprehensive review of our accounting policies and practices. Today, in our SEC Form 12b-25 filing, Fannie Mae provided details on this work and several relevant implications of the restatement.

Completing this restatement is Fannie Mae's number-one corporate priority, and we are moving forward. The effort is led by a top executive team -- interim Chief Financial Officer Rob Levin, our new Controller, David Hisey, and our Executive Vice President for Regulatory Agreements and Restatement, Mike Williams -- working with our new independent auditor, Deloitte & Touche, LLP. All of these activities either report directly to the Board of Directors' Audit Committee or to me. This process involves every line of business and entails a comprehensive review of our accounting practices, including those related to derivatives, mortgage purchase and sale commitments, and investment securities, among others.

The restatement begins with a reevaluation of all of our accounting policies and practices. Then, coupled with the known issues and any further issues we identify in the process, we will implement new accounting procedures, develop new systems, and install new routines and controls. We will then move to the stage of reprocessing historical transactions, and to a lesser degree, even where the accounting policy is unchanged, we will have to demonstrate the accuracy of the accounting we used for those practices. This will produce a complete re-audit of all aspects of our financial statements. Finally, while Deloitte & Touche already has begun certain pieces of their audit, the firm will only be able to audit the portions of our financial statements requiring restatement once we have completed all of our work described above. We are undertaking aspects of this effort simultaneously wherever possible, but much of the work has to occur in sequence; some of the activities, such as developing and implementing new systems, are long duration projects by their very nature.

We are leaving no stone unturned. To accomplish this, we have to obtain and validate market values for a large volume of transactions including all of our derivatives, commitments and securities at multiple points in time over the restatement period. To illustrate the breadth of this undertaking, we estimate we will need to record over one million lines of journal entries, determine hundreds of thousands of commitment prices and securities values, and verify some 20,000 derivative prices.

As our normal business operations continue, we also are committing every available resource to the restatement. This year we expect that over 30 percent of our employees will spend over half their time on it, and many more are involved. In addition, we are bringing some 1,500 consultants on board by year's end to help with the restatement. We have organized lines of accountability, a Project Management Office, regular review and reporting and ongoing Board oversight. Altogether, we project devoting six to eight million labor hours to the restatement. We also are investing over $100 million in technology projects to enhance or create new systems related to accounting and reporting. We are fortunate to begin with a talented, committed group of employees. We also have had great success in recruiting a strong team and have significantly increased the size of our Controllers Department.

From the beginning of this effort, I have said that we will put as much time, manpower and resources into the restatement as the restatement needs, and we will not be done until we are confident we have done it right. While we do not believe the restatement will be completed until sometime during the second half of 2006, our goal is to get our restatement right and to complete it as efficiently and expeditiously as possible.

Finally, as we also disclosed in our Form 12b-25 today, as we work through our restatement and review, Fannie Mae is engaged in regular discussions with the staff of the New York Stock Exchange regarding the status of our restatement and continued listing through completion of the restatement.

We are committed and determined to get this work done, get it right, and continue on the path of restoring investor, market and public confidence in Fannie Mae.

Fannie Mae is a New York Stock Exchange Company. It operates pursuant to a federal charter. Fannie Mae has pledged through its American Dream Commitment to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Source: Fannie Mae

[perfect stranger]

You gotta point there.

If FNM could in any way be tied to Republicans it would be considered the "new potential Enron" and be all over the MSM.

[Grampa Dave]

Yes, the aroma of Gore Licker fills the ozone layer around Fanny Mae.

The Gizzard of Omaha called this one correctly. He got out of these bonds and their stocks in late 2001 and early 2002 if my ole memory is correct.

We got out of them during the same time, and any mutual fund with more than 5% was sold or never bought.

This is what happens when the Criminals of the Left are put charge of any corporation or non profit. They will rape/pillage and PC that organization to its death.

Bob Brinker is probably still touting them as the safest and best investment ever created for mankind.

[Grampa Dave]

Backhoe has quiet an index on Gore Licker's involvement with the recently revealed Atta mess. Backhoe has labeled her wall and involvement there as Gorelick Gate.

http://www.freerepublic.com/focus/f-news/1117579/posts

[Liz]

This is what happens when the Criminals of the Left are put in charge of any corporation or non profit. They will rape/pillage and PC that organization to its death.

The left lives and dies by their own greed and rapaciousness. Scumbags.

[Ann Archy]

Isn't Jamie Gorelick on Schumberger's board ALSO! Don't they have something to do with OIL??

[BOBTHENAILER]

So Gorelicker's on the board at Mae's Fannie?

[BOBTHENAILER]

Thanks for Backhoe's excellent compilation.

[backhoe]

Thanks!

[SierraWasp]

They shoulda named her Barbie, cause that bich has everything and is everywhere an into everything!!!

[Grampa Dave]

"Isn't Jamie Gorelick on Schumberger's board ALSO! Don't they have something to do with OIL??'

As Shermy has pointed out in the past, Schlumberger, is the French controlled owned company in all types of oil work. The press should focus on Schlumberger as the evil company instead of Haliburton.




http://www.freerepublic.com/focus/f-news/1117248/posts

GORELICK GATE: Jamie S. Gorelick Commissioner's Bio
911 Commission ^ | April 13, 2004 | 911 Commission


Posted on 04/13/2004 11:25:46 PM PDT by joinedafterattack


Jamie Gorelick is a partner at Wilmer, Cutler & Pickering. Prior to joining Wilmer, Cutler & Pickering in July 2003, Gorelick was vice chair of Fannie Mae. As part of the four-person Office of the Chairman, she shared responsibility for overall management of the company, directed its efforts to reach underserved markets and oversaw Fannie Mae's external relationships, legal and regulatory affairs. Prior to joining Fannie Mae in May 1997, Gorelick was deputy attorney general of the United States, a position she assumed in March 1994. From May 1993 until she joined the Justice Department, Gorelick served as general counsel of the Department of Defense. From 1979 to 1980 she was assistant to the secretary and counselor to the deputy secretary of energy. In the private sector, from 1975 to 1979 and again from 1980 to 1993, Gorelick was a litigator in Washington, D.C., representing major U.S. companies on a broad range of legal and business matters. She served as president of the District of Columbia Bar from 1992 to 1993. Gorelick is a graduate of Harvard College and Harvard Law School. She also serves on several boards, including the Fannie Mae Foundation, United Technologies Corporation, Schlumberger, Limited, The John D. and Catherine T. MacArthur Foundation, the Harvard College Board of Overseers, America's Promise, the Washington Legal Clinic for the Homeless, the Carnegie Endowment for International Peace, the Local Initiatives Support Corporation, and The National Park Foundation. She is also a member of the Council on Foreign Relations and the American Law Institute. Gorelick co-chaired, with Senator Sam Nunn, the Advisory Committee of the President's Commission on Critical Infrastructure Protection, and currently serves on the Central Intelligence Agency's National Security Advisory Panel as well as the President's Review of Intelligence.

[tubebender]

This sounds like the fiasco over at the BIA where a "audit" has been ongoing for years after they admitted they couldn't account for BILLIONS owed to Indian Tribes for royalty and lease payments.

[Grampa Dave]

"This sounds like the fiasco over at the BIA where a "audit" has been ongoing for years after they admitted they couldn't account for BILLIONS owed to Indian Tribes for royalty and lease payments."

Thanks for posting this. It seems like Jake Reno was up to her 8' Wookie butt on this crime. Of course we are finding out that Jamie Gorelicker was the real AG. Reno would just stagger out and mutter some nonsense to protect the Clintoons.

[Grampa Dave]

http://www.hcn.org/servlets/hcn.Article?article_id=5524


119 Grand Avenue * PO Box 1090 * Paonia, CO 81428 * (970) 527-4898
www.hcn.org
-- Vol. 32 No. 2 | January 31, 2000

Hotline
Printable Version

Judge rules on Indian money mess
by Robyn Morrison

A federal judge says he'll personally oversee the Interior Department's effort to untangle a mess of mismanaged Indian trust money.


U.S. District Judge Royce Lamberth's decision settled the first half of a class-action lawsuit, led by banker Elouise Cobell of the Blackfeet tribe. She and others charged the federal government with losing track of billions owed to Native Americans from farming, ranching, mining, and logging leases on Indian lands (HCN, 3/15/99).


In his ruling Dec. 21, Lamberth ordered the government to report to him every three months on its progress in fixing the accounting system. The judge lambasted the U.S. government for its "long and sorry history" of mismanaging Indian money, but concluded, "The court has given the defendant one last opportunity to carry through on their promises."


Nonetheless, the Justice Department appealed the ruling Jan. 3, arguing that the judge's supervision could hamper Interior's ongoing efforts to clean up Indian trust accounts. To ensure better supervision, the Bureau of Indian Affairs says it's moving its computer-systems management office from Albuquerque, N.M., to a suburb of Washington, D.C. Last summer, the department unveiled a new software program designed to end its sloppy accounting.


No one is certain, however, that the changes are enough. The General Accounting Office reported in June 1999 that the computer program was a waste of money; last May, the U.S. Treasury Department admitted to shredding 162 boxes of documents possibly related to the lawsuit.


Says Keith Harper of the Native American Rights Fund, "The appeal is just a continuation of the notion that they can do anything they see fit on tribal issues."


*Robyn Morrison


Who was President in 2000? Who was the AG in name only to front for Gorelicker?

[BOBTHENAILER]

last May, the U.S. Treasury Department admitted to shredding 162 boxes of documents possibly related to the lawsuit

This suit was initiated, I think, in the early part of the Clintoon RICO admin. They should be looking for offshore transfers into Clintoon RICO accounts. I think it was Bruce Babbit, former AZ guv, who was held in contempt by Lamberth, and eventually forced to resign under a huge cloud.

[fish hawk]

I remember reading an article claiming that the court held Bruce Babbitt in contempt for not furnishing the court with the papers they wanted. He was fined $600,000, if I remember correctly. But it turns out that no individual in his position can be tried on a personal basis so therefore the fine was paid from taxpayers money, and Babbitt resigned and walked clear and free.

[BOBTHENAILER]

Figures, don't it.

[Grampa Dave]

"I remember reading an article claiming that the court held Bruce Babbitt in contempt for not furnishing the court with the papers they wanted. He was fined $600,000, if I remember correctly. But it turns out that no individual in his position can be tried on a personal basis so therefore the fine was paid from taxpayers money, and Babbitt resigned and walked clear and free."

Thanks for your recall and posting this summary.

[Ann Archy]

and currently serves on the Central Intelligence Agency's National Security Advisory Panel as well as the President's Review of Intelligence.

CURRENTLY????? NOW....THIS dATE, AUG>15TH???? She serves on the CIA NaTIONAL SECURITY ADVISORY PANEL and the PRESIDENT'S REVIEW OF INTTELLIGENCE?? COULD THIS BE TRUE?? It seems like a JOKE.

This info needs to be passed to Curt Weldon and some BLOGGERS!! Talk about the FOX guearding the Hen House!!

[Grampa Dave]

This is old stuff. In fact one of these goes back to May 2001 before 9/11.

Bush orders review of intelligence -gathering operations
May 12, 2001 Posted: 5:22 PM EDT (2122 GMT)

---

---

WASHINGTON (CNN) -- President Bush has ordered a review of U.S. intelligence-gathering operations and has tapped CIA Director George Tenet to supervise the comprehensive survey.

Tenet will oversee the review of the Central Intelligence Agency operations, as well as other intelligence-gathering entities.

The order places Tenet, the last CIA director under former President Bill Clinton, in charge of appointing members of two commissions to study all U.S. intelligence-gathering operations.

The officials, who spoke on condition of anonymity, said the president's review is a sign that he believes neither Tenet nor Clinton thoroughly evaluated the effectiveness or organizational structure of the U.S. intelligence apparatus.

[SierraWasp]

"The officials, who spoke on condition of anonymity, said the president's review is a sign that he believes neither Tenet nor Clinton thoroughly evaluated the effectiveness or organizational structure of the U.S. intelligence apparatus."

Well, thank God for little freakin favors!!! One would certainly hope so!!!

Sometimes, the management of this once great nation just scares me almost to death!!! It gets downright SLOPPY!!!