NATION

NATION
Troubles at Fannie Mae
WASHINGTON -- Regulators have found serious accounting problems at mortgage giant Fannie Mae, prompting an inquiry by the Securities and Exchange Commission and calling into question its financial soundness.
In at least one instance, the regulators found, it appeared that management of the government-sponsored company put off some accounting for expenses to a future reporting period in order to meet earnings targets that brought bonuses for executives.
The report by the Office of Federal Housing Enterprise Oversight describes what it sees as a pervasive pattern of earnings manipulation, lax internal controls and a corporate culture "that emphasized stable earnings at the expense of accurate financial disclosures."
Associated Press