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Timeline: Fannie Mae

Friday, October 8, 2004; 3:53 PM


Nov. 15: Fannie Mae, accused by regulators of deliberately flouting accounting rules, says that it could not meet a deadline for a quarterly financial report and may be required to record $9 billion of previously unreported losses if the Securities and Exchange Commission determines that its accounting was wrong.

Oct. 6: Speaking before a House subcommittee in his first public response to a critical report by the Office of Federal Housing Enterprise Oversight, Fannie Mae chief Franklin D. Raines criticizes the regulator for airing allegations that the company cooked its books so executives could receive bonuses. Armando Falcon Jr., OFHEO's director, counters in a separate appearance that Fannie Mae deliberately flouted accounting rules to make its earnings growth appear steady and to boost executive compensation. Former Fannie Mae accountant Roger L. Barnes says in a written statement that the company used "threats, intimidation and reprisal" against him and others who raised concerns about accounting.

Sept. 30: Fannie Mae's stock takes another beating after reports that the Justice Department has opened a criminal investigation of the giant mortgage finance company's accounting.

Sept. 27: Fannie Mae agrees to stop using accounting methods that its regulator criticized the previous week and to raise billions of dollars of additional capital as a cushion against potential losses.

Sept. 22: Fannie Mae used improper accounting methods that raise serious questions about the quality of its management and the validity of its financial reports, government regulators report.

May 10: Fannie Mae will adopt a tougher accounting standard demanded by its regulator in valuing securities backed by loans on manufactured homes, the company says in a regulatory filing.

May 6: Fannie Mae's regulator says the company improperly accounted for the declining values of two types of securities in its portfolio, though it did not say how big those unreported losses could be.

May 3: Federal housing regulators are reviewing whether three large deals Fannie Mae and Freddie Mac made in late 2003 should count toward the government-sponsored mortgage companies' annual affordable housing quotas, Federal Housing Commissioner John C. Weicher says in an interview.

April 23: Franklin D. Raines, chairman and chief executive of Fannie Mae, received $17.1 million of compensation in 2003, a 46 percent jump from $11.7 million the year before, the company reports.

April 19: Fannie Mae says profits for the first quarter dipped by 2.1 percent from a year ago and that, in contrast to normal practice, it is not yet releasing its first-quarter balance sheet.

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