Fannie pay

Fannie Mae is withholding at least 36 bonuses from current and former officials, which in the aggregate are worth $44.4 million. According to a February 20 regulatory filing, the board of directors announced that Fannie Mae will not make bonus payouts under the mortgage lender’s long-term incentive performance share program that dates back to award cycles that started in 2001.

The company, which generates $52 billion in revenues, is still working through a massive $10.8 billion accounting scandal stemming from its derivatives and hedging activities. Last year, the company announced that it was spending more than $1 billion to prepare restatements covering the past few years.

The restatement and related regulatory costs amount to roughly $850 million, while costs associated with the preparation of financials and related regulatory filings for periods after 2004 are estimated to exceed $200 million. In addition, the lender announced in May that it agreed to pay $400 million to settle charges related to its accounting problems with the Office of Federal Housing Enterprise Oversight (OFHEO) and the Securities and Exchange Commission. (CFO.com)

Advertisements