Verdicts & Settlements
Accounting Case Against Ex-Fannie Mae Officials Expected to Settle
The Office of Federal Housing Enterprise Oversight is expected to announce a settlement today with three former officials of Fannie Mae for their roles in an accounting scandal.
A suit by the regulator claimed the officials inflated earnings and neglected internal controls in an effort to maximize their bonuses, report the Wall Street Journal (sub. req.) and the New York Times. The newspapers were unable to learn terms of the settlement. The suit had sought the repayment of more than $115 million in bonuses.
The officials are Franklin Raines, who was chief executive officer, Timothy Howard, former chief financial officer, and Leanne Spencer, former controller.
