Hat tip to L for spotting this news release [1] earlier today announcing that the US (in the person of F&F’s regulator OFHEO) would be pursuing civil charges against three former Fannie Mae executives.
“The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner. The misconduct cost the Enterprise and shareholders many billions of dollars and damaged the public trust,” [OFHEO Director] Lockhart said.
