Fannie Mae will pay $400 million to put an end to the accounting woes that have dogged the home mortgage giant since 2004.The latest estimates from government-chartered Fannie Mae, whose official name is the Federal National Mortgage Association, are that the company expects to reduce net income by upwards of $11 billion in financial restatements for fiscal years spanning 1998 to 2004.
The Office of Federal Housing Enterprise Oversight and the Securities and Exchange Commission jointly announced the settlement, which coincided with the release of a 340-page report from OFHEO that blamed Fannie Mae's board and management for a corporate culture that allowed managers to use bad accounting to manage earnings and trigger bonuses.
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