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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: John Vosilla who wrote (63797)	6/15/2006 11:33:42 AM
From: shades	Read Replies (1) of 110194

Fannie's Restatement 'Astounding Failure' - Hagel . By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--Pounding his fist repeatedly on the dais at a Senate Banking Committee hearing, Sen. Chuck Hagel, R-Neb., lashed out at those who said Fannie Mae's (FNM) ongoing restatement of at least $11 billion wasn't as bad as the collapse of Enron Corp. (ENE). Hagel called the restatement "an astounding failure of management and board response, driven clearly by self-interest and greed." He said that "when we reference this issue in the context of 'the best we can say is it's no Enron,' now that's a helluva" high standard. Hagel is one of the lawmakers calling most loudly for tighter regulation of giant mortgage financiers Fannie Mae and Freddie Mac (FRE). His comments come more than three weeks after regulators fined Fannie Mae $400 million to settle allegations that it had misstated financial statements from at least 1998 through 2004. The Office of Federal Housing Enterprise Oversight also chronicled a massive accounting scandal at the company in which senior management allegedly manipulated earnings to trigger hundreds of millions of dollars in bonuses. Sen. John Sununu, R-N.H., said that "there are differences" between Enron and Fannie Mae. "Perhaps the biggest difference at the moment is that the guys at Enron have been convicted," he said. Fannie Mae's current chief executive, Daniel Mudd, has apologized and has said that the company is making strides as it seeks to recover. Hagel urged Senate leaders to bring a bill to step up regulation of Fannie Mae and Freddie Mac up for a vote on the Senate floor. "This issue needs to be dealt with," Hagel said. "It needs to come before the Senate and I hope the majority and minority leader of the Senate or their staff are taking note of this hearing this morning." I -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; siobhan.hughes@dowjones.com (END) Dow Jones Newswires June 15, 2006 11:32 ET (15:32 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 11 32 AM EDT 06-15-06

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