Fannie Mae fined $400m for accounting scandal
SEC criticises its ‘unethical corporate culture’ at US mortgage giant
SEC criticises its ‘unethical corporate culture’ at US mortgage giant
US mortgage giant Fannie Mae has been hit with a $400m (£212m) fine for an
accounting scandal.
The firm, which reportedly altered earnings to trigger management bonuses,
was heavily criticised in a report by the Office of Federal Housing Enterprise
Oversight (OFHEO) and the Securities & Exchange Commission for its
‘unethical corporate culture’.
‘The penalty and settlements represent a major step in correcting a dangerous
course that had been followed by one of the largest financial institutions in
the world,’ said acting OFHEO director James Lockhart.
‘Unprincipled corporate behaviour and inadequate controls will simply not be
tolerated,’ Lockhart added.
Several directors quit following the scandal breaking including the CEO and
CFO.
‘We are glad to resolve these matters,’ said Daniel H Mudd, president and CEO
of the company. ‘We have all learned some powerful lessons here about getting
things right and about hubris and humility. We are a much different company than
before. But we also recognise that we have a long road ahead of us.’
The numbers you crunch tell a story. Your expertis...
18yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleWe all understand the role of lawyers in an arbitration, to argue over points of liability and who was at fault. But most commercial cases are brought...
View articleAn anonymous corporate finance veteran with over 20,000 hours of experience unlocks invaluable insights by pulling back the curtain on the rarely seen...
View articleThe UK's National Living Wage increase to £11.44/hr demands significant adjustments in payroll and reporting for accountants, impacting compliance, fi...
View articleThis regulatory update aims to simplify the reporting process, reduce administrative burdens, increase accuracy, and provide real-time reporting capab...
View articleTechnology could enable this by allowing teams to 'speak the same language' Read More...
View articleBegbies Traynor had a strong first half to its year, buoyed by increased revenue and a number of acquisitions Read More...
View articleRicky Shankar, Chairman of Clear Factor, explains how his own experience with banks led to the creation of Clear Factor - a decentralised global invoi...
View articleLooking at spending patterns of more than 1000 Spendesk users in 35 European countries, making 800,000 transactions totalling over €120million, the ‘S...
View article