Tuesday, May 23, 2006

 

Inman Real Estate News - Fannie Mae's 'best-in-class' image a 'façade'

"'As the OFHEO report shows, the image of Fannie Mae as one of the lowest-risk and 'best in class' institutions was a fa├žade. In fact, it was just the opposite. They promoted unconstrained growth while undermining proper internal controls by under investing in systems, risk management and staff,' James B. Lockhart, OFHEO's acting director said in a statement today.

'Our examination found an environment where the ends justified the means. There was a systematic effort by senior management to manipulate accounting, reap financial rewards, and prevent the rest of the world from knowing about it,' Lockhart said."

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