Fannie Mae accounting investigators said they will indefinitely postpone reporting their findings because of evidence of more bookkeeping errors at the biggest U.S. mortgage finance company, the head of the probe said. "There are a lot of new issues, a lot of governance issues, a lot of internal control issues," said former U.S. senator Warren B. Rudman, who was hired to lead the independent accounting investigation. Rudman said in January that he intended to issue a report as early as this month. The probe has been particularly delayed by the review of information related to a Feb. 22 filing by the Office of Federal Housing Enterprise Oversight raising questions about the District-based company's internal controls, systems and journal entries related to amortization adjustments, he said.
Ex-Enron, Merrill Officials Sentenced
Dan O. Boyle, a former mid-level Enron finance executive who was convicted last year, along with four former Merrill Lynch executives, of conspiracy and fraud related to the sale of barges, was sentenced by a judge to a prison term of three years and 10 months and a $320,000 fine. Robert S. Furst, a former Merrill executive, was sentenced to three years and a month in prison and $665,000 in fines and restitution. Federal probation officials had pushed for Furst and Boyle to serve double-digit sentences. The barge fraud "would appear to have been one of the smaller and more inconsequential frauds committed by these conspirators at Enron," the judge said.
MORE NEWS
E-Trade Financial confirmed that it had made an unsuccessful stock and cash bid for rival online brokerage Ameritrade Holding. Ameritrade said it is not for sale.
First-time claims for unemployment benefits rose to 340,000, up 4,000 from last week, the Labor Department said. Claims are averaging 327,000 this year, down from the average in 2004.
Wal-Mart was asked by more than 50 U.S. lawmakers to disclose its wage statistics for congressional review. A group led by Rep. Rosa L. DeLauro (D-Conn.) wrote a letter to Wal-Mart chief executive H. Lee Scott Jr., saying they want to "further understand why Wal-Mart pays its women associates less than men."
Ford's credit rating was cut to the lowest investment grade by Moody's Investors Service, sparing the automaker a second downgrade to junk in a week. The ratings service said it reduced its assessment of approximately $175 million of Ford's debt two levels, to Baa3. Standard & Poor's cut its ratings of Ford's and General Motors' debt to non-investment grade last week.
The Federal Communications Commission will vote Thursday on rules that determine how customers of Internet-calling providers use 911 to reach emergency dispatchers.
