Fannie Mae / FNM

About Fannie Mae

3900 Wisconsin Ave. NW, Washington, D.C. 20016
www.fanniemae.com | 202-752-7000 | Founded: 1938

Industry: Financial Services | Category: Public Companies

Fannie Mae, the Federal National Mortgage Association, is still recovering from an accounting scandal that drove top executives from power in 2004 and left the company subject to restraints on its growth. In May 2006, the Securities and Exchange Commission charged Fannie Mae with civil accounting fraud. Without admitting or denying wrongdoing, Fannie agreed to pay a $400 million penalty. The settlement, which also involved the Office of Federal Housing Enterprise Oversight, prohibited Fannie Mae from expanding its investment portfolio beyond its size at the end of 2005.
Concluding a long-running investigation, OFHEO said that Fannie had "an arrogant and unethical corporate culture" and that employees manipulated numbers to trigger executive bonuses from 1998 to 2004.
In August, the Justice Department ended a criminal probe of Fannie Mae without seeking charges against the company.
In December, it completed its accounting corrections, erasing $6.3 billion of previously reported profit.
OFHEO filed administrative charges against three former Fannie executives, including former chairman and chief executive Franklin D. Raines, to recover more than $115 million in pay they received while the company's earnings were misstated, plus penalties that could exceed $100 million.
The company spent about $850 million last year dealing with the legal and regulatory fallout from the accounting scandal. Yet it remains unable to issue timely financial reports, and its shares trade on the New York Stock Exchange by special dispensation.
The company said in April that it will eliminate several hundred jobs this year, and it recently decided to close its corporate foundation and move its charitable activities in-house.

Non-Executive Chairman : Philip A. Laskawy

2006 Financial Data

Total employees: 6,450 | Local employees: 5,248