Industry News

Congress to probe Fannie Mae’s accounting

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The House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises will hold a hearing on accounting problems and management issues at Fannie Mae on Oct. 6, the subcommittee announced today. The hearing, entitled "The OFHEO Report: Allegations of Accounting and Management Failure at Fannie Mae," will focus on the "Report of Findings to Date, Special Examination of Fannie Mae." The hearing will begin at 10 a.m. in room 2128 of the Rayburn Building. "The outrageous conduct outlined in OFHEO's report suggests that for too long Fannie Mae has acted as if it were somehow above the law while arrogantly flouting all accountability to the Congress, and that must come to an end," said Rep. Richard Baker (R-La.), chairman of the subcommittee. "We could not tolerate such behavior from Enron, but the stakes are higher and the betrayal all the more egregious when we're talking about a company, with almost $1 trillion in debt tied to taxpayers, that was...