In the latest management shuffle, three more accounting executives at mortgage giant Fannie Mae have stepped down from their posts.
Senior vice presidents Jonathan Boyles, who oversaw accounting policy and tax; Janet L. Pennewell, who oversaw financial reporting; and Sam Rajappa, who oversaw internal auditing, all moved into unspecified advisory roles, a spokesman for Fannie Mae told the Washington Post this week.
The move follows the troubled enterprise's disclosure in a regulatory filing last week that principal accounting officer Leanne G. Spencer will step down as senior vice president and controller at the end of the month, but will remain in a non-officer capacity until next year.
Weeks earlier, chairman and chief executive Franklin D. Raines and vice chairman and chief financial officer J. Timothy Howard were forced out after officials from the Securities and Exchange Commission said that Fannie Mae violated accounting rules and would have to restate three years' worth of financials. The company has estimated that it may have to take a $9 billion loss related to its past accounting for derivatives.
The Fannie Mae spokesman told the paper that arrangements were still being finalized for Boyles, Rajappa and Pennewell, "but we expect them to be similar to those of Leanne Spencer."
According to the Post report, Boyles had primary responsibility for developing Fannie Mae's internal guidelines on accounting for derivatives under Financial Accounting Statement 133. The article also cited a September report by Fannie Mae's overseer, the Office of Federal Housing Enterprise Oversight, that noted conflicts of interest in the roles of Pennewell and Rajappa.
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