Industry News

Fannie Mae withholds 2004 bonuses

Company's top accounting officer resigns

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Fannie Mae, the home loan financing giant beleaguered by major financial misstatements, will withhold last year's cash bonuses for its top managers, according to a Securities and Exchange Commission report. Fannie Mae also reported that its principal accounting officer, Leanne G. Spencer, is stepping down as senior vice president and controller on Jan. 31. Fannie Mae last month replaced Franklin Raines, its chairman and CEO, who announced he was taking early retirement, and Fannie Mae's chief financial officer, Timothy Howard, resigned Dec. 21. The two left in the wake of an SEC directive to make accounting corrections that could knock out some $9 billion of Fannie Mae's past profit. Fannie Mae's financial accounting troubles have drawn shareholder lawsuits and investigations by the Justice Department and the Securities and Exchange Commission. Fannie Mae's federal regulator, the Office of Federal Housing Enterprise Oversight, had asked the company to hold off paying any compensati...