Industry News

Congress to probe SEC accountant on Fannie Mae

Baker Subcommittee hearing set for next week
Published on Feb 3, 2005

A House Financial Services subcommittee plans to further probe home loan giant Fannie Mae's earnings restatement at a meeting next Wednesday in Washington, D.C.   Securities and Exchange Commission chief accountant Donald T. Nicolaisen will testify before members of the Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.   Members of the committee, which is chaired by Rep. Richard H. Baker (R-La.), will have the chance to question Nicolaisen about the recent decision that Fannie Mae violated accounting rules.   The SEC opinion followed a special examination by the Office of Federal Housing Enterprise Oversight and led to management changes. The opinion included a recommendation for an earnings restatement, which has been estimated at $9 billion by Fannie Mae.    "This hearing represents the first chance for members of Congress to explore the nature and severity of the Fannie Mae violations since the SEC made a...

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