Industry News

Raines out as Fannie Mae CEO

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Fannie Mae's board of directors dismissed its top two executives late Tuesday night in the wake of a growing accounting scandal. CEO Franklin Raines announced his early retirement from the mortgage giant, while chief financial officer J. Timothy Howard announced his resignation. The departures come after days of board talks and less than a week after the Securities and Exchange Commission directed the company to make accounting corrections that could erase $9 billion of past profit. Ann Korologos, the presiding director of the non-management members of the board, thanked Raines and Howard for their "many contributions" but said the board "takes these steps today to move the company forward to serve its critical mission in a safe and sound manner." Raines, who defended the company's accounting practices at an October congressional hearing, said he would hold himself accountable if the SEC determined the company made significant mistakes in its accounting. "Although, to my knowledge, th...