Fannie Mae

Washington, DC: (Feb-27-07) Mortgage giant, Fannie Mae, has been under federal scanners for reasons ranging from withholding $44.4 million in bonuses from their employees to the kind of corporate culture they endorse. The Securities and Exchange Commission levied a $400 million civil penalty - one of the biggest ever in an accounting fraud case - against the company in a settlement alleging that the company manipulated their turnovers to reach quarterly earnings targets so that company executives could pocket hundreds of millions in bonuses, accusing them of an unethical work culture. As part of the agreement, Fannie Mae also agreed to limit the growth of its multi billion-dollar mortgage holdings, capping them at $727 billion, and to make top-to-bottom changes in its corporate culture, accounting procedures and ways of managing risk. [KIPLINGER: FANNIE MAE ACCOUNTING FRAUD]

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