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 façade. 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."
'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."
