Fannie Mae Investors May Be Entitled to $10B
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Fannie Mae investors should be entitled to about $10 billion in compensation for losses stemming from accounting manipulation at the mortgage finance company, the Attorney General of Ohio, Marc Dann, said yesterday. “It was not until the fall of 2005 that people had an actual sense of the magnitude of the restatement,” Mr. Dann said in an interview after a hearing in the U.S. District Court in Washington. Federal investigators accused former company executives of overstating earnings by $6.3 billion during that time in order to trigger annual bonuses. The estimate is almost double the $5.3 billion the company spent on expenses in 2005 and 2006 combined, largely to fix accounting controls.
