Reuters on Fannie Mae defends accounting to Congress – CEO Raines says regulators misinterpreted rules:
Fannie Mae’s chief executive and another top official on Wednesday defended the mortgage giant’s accounting and told Congress that regulators’ allegations of earnings manipulation represent an interpretation of complex rules. Chairman and CEO Franklin Raines was making his first public appearance since news of the allegations and a Securities and Exchange Commission inquiry into government-sponsored Fannie Mae surfaced on Sept. 22.
This scandal is going to get really ugly before its all over. I’ve spent the last two and half hours watching the hearing on streaming video via the House Committee on Financial Services website. Written statements are available here.
Folks, there ain’t nothing more fascinating than three hours of partisan political discussion on the finer points of Generally Accepted Accounting Principles and executive compensation.