[wideminded]

On April 18, 2008, the government announced a settlement with Raines together with J. Timothy Howard, Fannie’s former chief financial officer, and Leanne G. Spencer, Fannie’s former controller. The three executives agreed to pay fines totaling about $3 million, which will be paid by Fannie’s insurance policies.

1. Who's paying the $3 million, Raines et al, or Fannie's insurance policies?

[maggief]

Source:

http://online.wsj.com/article/SB120873768732229983.html?mod=rss_whats_news_us_business

Fannie Mae Settlement Proves Anticlimactic

In Flannery O’Connor’s short story “A Good Man Is Hard to Find,” a car bearing a dysfunctional family flips over and lands in a gulch. “We’ve had an accident!” the children shriek in delight. Then, one of them looks around and says with disappointment, “But nobody’s killed.”

The accounting wrecks suffered by Freddie Mac and Fannie Mae in 2003 and 2004 are ending in similar anticlimax. Regulators made grave charges; for instance, accusing Fannie executives of having manipulated earnings to fatten up their bonuses. But there have been no perp walks, and no one has gone to jail.

A settlement ...

[Seattle Conservative]

I suspect that would be you, other FReeper FRiends and moi.

Here’s another article I found from 2005 and posted on the compilation thread:

Long article (from 2005), but a lot of history:

The Fall of Fannie Mae
This is not your ordinary accounting fraud. Yes, there’s the matter of $9 billion in overstated earnings. But the fight over Fannie is a nasty political showdown where everyone has his own agenda. And it’s not over yet.

By BETHANY MCLEAN
January 24, 2005
(FORTUNE Magazine)

http://money.cnn.com/magazines/fortune/fortune_archive/2005/01/24/8234040/index.htm

7 posted on Wednesday, September 17, 2008 10:02:21 AM by Seattle Conservative (God Bless and protect our troops and their CIC)
http://www.freerepublic.com/focus/f-news/2084407/posts