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Reassuring Answers

Monday, December 20, 2004; Page E10

After the disclosure of accounting problems at Freddie Mac last June, Fannie Mae chief executive Franklin D. Raines defended the company's practices in statements and answers to interviewers' questions.

Accurate Accounting: Should investors have confidence that they have your personal assurances?

"Well, they've got it in writing. That's one of the things that's happened now since the Sarbanes-Oxley Act that CFOs and CEOs have to personally certify to their financial statements. And so we go to a great effort to every quarter, to satisfy ourselves that we have in place the kinds of internal controls necessary to make that kind of certification."

_____More From This Series_____
A Personal Test (The Washington Post, Dec 20, 2004)
Deep Political Support Often Blunted Efforts To Step Up Regulation (The Washington Post, Dec 20, 2004)
Executive Fought Accounting Rules That Bit Company (The Washington Post, Dec 20, 2004)
Smaller Rival Showed Remorse, Cooperated (The Washington Post, Dec 20, 2004)
Problems Won't Affect Move, Developer Says (The Washington Post, Dec 20, 2004)
Scandal Boosts Oversight Agency's Reputation (The Washington Post, Dec 20, 2004)
Sarbanes-Oxley Act Could Punish Executives (The Washington Post, Dec 20, 2004)
A Special Status Examined (The Washington Post, Dec 20, 2004)
Congress Puts New Regulator on the Fast Track (The Washington Post, Dec 20, 2004)
More Fannie Mae Stories

CNNFN interview,

July 15, 2003

Accounting Rules: Has Fannie Mae circumvented them?

"The answer to that is clearly, no. We have not. If we had, I would have violated the law in certifying our financial results. If we had, our auditors would be obligated to publicly do something about that."

News conference,

July 30, 2003

Impact of Investigations on Fannie Mae and Freddie Mac

"I think it has been devastating to the reputation of these firms, and I think it has caused material harm to consumers, because we have seen the uncertainty injected into the capital markets, and that uncertainty takes the form of higher interest cost."

News conference,

July 30, 2003

Fallout from Freddie Mac's Problems

"And we have suffered a lot of that, and I think unfairly, because as I mentioned before, unlike Freddie Mac, we didn't do any of these things. We should not be subject to the same penalty that they are being subjected to."

News conference,

July 30, 2003

Regulatory Scrutiny

"We welcome the review by OFHEO, because we have a great deal of confidence in our application of appropriate accounting principles."

News conference,

July 30, 2003

Fannie Mae's Hedging Techniques

"We don't use any exotic derivatives, just the plain vanilla options and interest-rate swaps to achieve our goals."

Interview with

America's Community Banker,

Oct. 1, 2003

Corporate Governance

"We work very hard at Fannie Mae to be a best-in-class company with regard to corporate governance and disclosures, and Fannie Mae and Freddie Mac are apparently quite different companies in that regard."

Speech at

George Washington University,

Dec. 18, 2003

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