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Will Fannie Mae's Board Ever Come Clean?(Federal National Mortgage Association)
If you're a director of a publicly traded company who are you responsible to - (1) the executives who put you there in the first place or (2) the shareholders? If you answered #1 you can stop reading this column right here.
When Fannie Mae chairman and CEO Franklin Raines (one of the most "connected" men in Washington) and company chief financial officer Timothy Howard got the boot in December 2004, the GSE's board of directors practically had tears in their eyes.
The only reason the company got rid of Messrs. Raines and Howard was because the Office of Federal Housing Enterprise Oversight was ready to get rid of the board. (One of these days, hopefully, the real story of the board's comeuppance will be told.)
Shortly before - and then after - the two men got forced out (by the board), a handful of mortgage executives close to the GSE had told us on several occasions that the board had no plans to ax two men, despite mounting evidence that they played a key role in bending accounting rules that resulted in what will be an $11 billion downward statement of earnings.
(One of these days this downward restatement will actually happen.)
Now the big question: Why was the board not critical of Messrs. Raines and Howard? Why did it take a regulator holding a baseball bat to their heads to get them to act?
Granted, until the Freddie Mac accounting scandal broke in June of 2003, few politicians had the guts to go after the GSEs, Rep. Richard Baker, R-La., being one of the few. On the surface it appeared to a battle of competitors - the GSEs vs. their critics (and competition) at FM Watch, a group whose mission started as a way to combat GSE "charter creep."
- Fannie Mae's Targeted Community Reinvestment Act Loan Volume Passes $10 Billion...
- Press release article from: Business Wire May 7, 2001 700+ words
...BUSINESS WIRE)--May 7, 2001 Fannie Mae (FNM/NYSE), the nation's largest...schedule. In the spring of 1999, Fannie Mae pledged to purchase at least $10...of the year 2002. The progress of Fannie Mae's CRA transactions volume was announced...
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...FirstCall-AsiaNet/ - In 2003, Fannie Mae will issue subordinated debt at least semi-annually. Fannie Mae will issue subordinated debt in an...After pricing this transaction, Fannie Mae will have issued US$12 billion...
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- Press release article from: PR Newswire February 10, 1997 700+ words
...Lock MBS/DUS option offered by Fannie Mae (NYSE: FNM), the nation's largest...deliver eligible MBS/DUS mortgages to Fannie Mae before the underwriting and loan...have been completed, and receive a Fannie Mae MBS/DUS in return. Fannie Mae...
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- News wire article from: Fort Worth Star-Telegram (Fort Worth, TX) August 18, 2002 700+ words
...Jares and Steve McLinden Aug. 18--Fannie Mae, the giant company behind one in...senior citizens and disabled people. Fannie Mae, which buys and sells mortgages...representatives applauded the plans, which Fannie Mae officials announced in a news conference...
- Fannie Mae Announces Mortgage Relief for Flood Victims in North Dakota, South...
- Press release article from: PR Newswire April 23, 1997 700+ words
...WASHINGTON, April 23 /PRNewswire/ -- Fannie Mae (NYSE: FNM), the nation's largest...and Minnesota. In addition, the Fannie Mae Foundation announced its commitment...South Dakota, and Minnesota. Fannie Mae's mortgage relief provisions give...
- Fannie Mae Chief Credit Officer Says Fannie Mae Credit Outlook Remains...
- Press release article from: Business Wire June 14, 2001 700+ words
...BUSINESS WIRE)--June 14, 200 Fannie Mae's Chief Credit Officer, Adolfo...s net income growth in 2001. "Fannie Mae's credit performance continues...institutions in 2001, it should not be for Fannie Mae," said Marzol. "The company...
- Fannie Mae May Be the Best Investment You Never Heard Of.
- Newspaper article from: Knight Ridder/Tribune Business News Kobell, Rona September 13, 1999 700+ words
...for another company, but not for Fannie Mae. The nation's largest source of...this year. Of 21 analysts covering Fannie Mae, formally the Federal National Mortgage...Two Bear Stearns analysts watching Fannie Mae said they considered shares to be...
- Fannie Mae Pledges Continued Support for President Bush's Nationwide Effort to...
- Press release article from: Business Wire October 15, 2002 700+ words
...BUSINESS WIRE)--Oct. 15, 2002 Fannie Mae Chairman and CEO, Franklin D. Raines...to expand minority homeownership. Fannie Mae's ten-point plan to help advance...document released by HUD today. "Fannie Mae commends President Bush and HUD...
- Fannie Mae Named One of Best Companies for Women of Color by Working Mother...
- Press release article from: PR Newswire May 19, 2004 700+ words
Fannie Mae was selected as one of the "Best Companies...employees. These benefits have earned Fannie Mae , the nation's largest source of financing...companies -- Allstate, American Express, Fannie Mae, General Mills, IBM and JPMorgan Chase...
- Fannie Mae Announces Benchmark Securities Calendar for 2005.
- Press release article from: PR Newswire November 23, 2004 700+ words
Fannie Mae today announced its defined dates for issuing...calendar. Discount Notes/Benchmark Bills Fannie Mae brings Benchmark Bills to market through a "Dutch auction" mechanism. In 2005, Fannie Mae will continue to hold Dutch auctions over...
Source: HighBeam Research, Will Fannie Mae's Board Ever Come Clean?(Federal National Mortgage...