[20061207]RS21949_房利美的会计问题.pdf

Order Code RS21949Updated December 7, 2006Accounting Problems at Fannie MaeMark JicklingSpecialist in Public FinanceGovernment and Finance DivisionSummaryOn September 22, 2004, the Office of Federal Housing Enterprise Supervision(OFHEO) made public a report that charged Fannie Mae, the government-sponsoredenterprise that plays a leading role in the secondary mortgage market, with not followinggenerally accepted accounting practices in several critical areas, which allowed FannieMae to conceal losses, reduce volatility in reported earnings, present investors with anartificial picture of steadily growing profits, and meet financial performance targets thattriggered the payment of large bonuses to company executives. Fannie Maes initialresponse was to argue that OFHEOs charges involved not improprieties, but merelydiffering interpretations of highly complex accounting standards. However, onDecember 15, 2004, the Securities and Exchange Commission (SEC), after findinginadequacies in Fannies accounting policies and methodologies, supported OFHEO anddirected Fannie Mae to restate its accounting results since 2001. Shortly thereafter, thecompanys CEO and CFO resigned. In May 2006, Fannie