Number: RS21949
Title: Accounting Problems at Fannie Mae
Authors: Mark Jickling, Government and Finance Division 
Abstract: In May 2006, Fannie Mae reached a settlement with OFHEO and the SEC, agreeing to pay $400 million in civil penalties, undertake a number of remedial steps related to internal controls and oversight of accounting systems, not increase the size of its mortgage portfolio without OFHEO's approval, and be enjoined from future violations of securities laws. In December 2006, Fannie issued the restatement, which reduced reported earnings for 2001-2004 by $6.3 billion.
Pages: 6
Date: December 7, 2006