Industry News

Fannie Mae’s top executive keeps his job

But special committee will head internal review

Fannie Mae's board of directors has decided to keep Daniel H. Mudd as chief executive, the chairman said in a statement Thursday, but he will not head an internal review of executives prompted by the company's $10.6 billion accounting scandal. "The board conducted a thorough review of every reference to Dan in the report...The review is complete and, with the unanimous support of the board, a decision has been made that Dan will remain as the president and CEO of Fannie Mae. The board has full confidence in Dan's leadership," Stephen B. Ashley, chairman of the board, said. "I have also asked the board to create a special committee of board members who joined the board after the period in time covered in the report who will oversee the personnel review agreed to in the settlement agreement with OFHEO," Ashley said. The Office of Federal Housing Enterprise Oversight, which has a federal mandate to oversee Fannie Mae, released a sharply critical report of Washington, D.C.-bas...