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2003
* June 9: Freddie Mac, the second largest U.S. buyer of home mortgages after Fannie Mae, announces it has fired president and chief operating officer David Glenn because he had not cooperated fully with an internal review of the company's accounting, which was being investigated by the Office of Federal Housing Enterprise Oversight. Chairman and chief executive Leland Brendsel and chief financial officer Vaughn Clarke resign. Freddie Mac had said in January it would have to restate its earnings for 2000-02.
* July 30: Fannie Mae chief executive Franklin Raines says he believes the company had unfairly suffered "collateral damage" to its public image and business from the debacle at Freddie Mac and that, "unlike Freddie Mac, we didn't do any of these things."
* Oct. 29: Fannie Mae discloses a $1.2 billion accounting error for the third quarter, which it says was due to a change in accounting rules and did not affect net income. The director of OFHEO, which supervises Fannie Mae and Freddie Mac, says the error underscores the need for a special review of Fannie Mae's accounting, which the regulators had begun in July.
2004
* May 6: OFHEO orders Fannie Mae to revamp its accounting to more closely reflect losses on some investments in mobile homes and aircraft leases, saying the company's accounting has violated standard principles in some instances.
* Sept. 22: Fannie Mae discloses the existence of a Securities and Exchange Commission investigation and acknowledges that OFHEO's review found serious accounting problems and earnings manipulation. The company's board hires attorney and former U.S. Sen. Warren Rudman, R-N.H., to conduct an investigation. Fannie Mae's share price drops 7 percent.
* Sept. 27: Under pressure from OFHEO, Fannie Mae agrees to boost its reserve cushion against risk by about $5 billion and to take other actions, including recalculating key transactions and tightening internal controls.
* Sept. 30: A separate criminal investigation of Fannie Mae's accounting by the Justice Department is confirmed.
* Oct. 6: Raines and Fannie Mae's chief financial officer, Timothy Howard, defend the company's accounting in sworn testimony at a congressional hearing, saying allegations of accounting improprieties and management misdeeds were a matter of interpreting complex rules.
* Nov. 15: Fannie Mae misses an SEC deadline for filing its third-quarter financial results after its independent auditor, KPMG, refuses to sign off on the report. The company acknowledges that some of its accounting practices don't comply with standard accounting principles and says it would show a net loss of $9 billion if the SEC decides it has improperly accounted for derivatives, the financial instruments used to hedge against interest-rate swings.
* Dec. 15: The SEC affirms OFHEO's findings and orders Fannie Mae to restate earnings back to 2001 because it violated accounting rules for derivatives and some prepaid loans.
* Dec. 21: Raines and Howard resign after being forced out by Fannie Mae's board. Daniel Mudd, the company's chief operating officer, is named interim chief executive.
2005
* Jan. 18: Fannie Mae cuts its first-quarter dividend by half, to 26 cents a share.
* Feb. 23: Additional accounting problems are disclosed, including serious deficiencies in internal controls.
* March 8: In an accord with the OFHEO regulators, Fannie Mae agrees to set up new policies to prevent faulty accounting and to split its chairman and CEO position into two jobs.
* March 17: The company discloses that it may have to record an additional loss of some $2.4 billion. The discovery of falsified signatures raises the possibility of criminal activity by company employees.
* Aug. 9: Fannie Mae says it likely won't complete the massive reworking of its accounting before the second half of 2006.
* Nov. 10: Fannie Mae discloses that new accounting errors have been uncovered and reaches outside the company to hire a new chief financial officer, Robert Blakely.
* June 9: Freddie Mac, the second largest U.S. buyer of home mortgages after Fannie Mae, announces it has fired president and chief operating officer David Glenn because he had not cooperated fully with an internal review of the company's accounting, which was being investigated by the Office of Federal Housing Enterprise Oversight. Chairman and chief executive Leland Brendsel and chief financial officer Vaughn Clarke resign. Freddie Mac had said in January it would have to restate its earnings for 2000-02.
* July 30: Fannie Mae chief executive Franklin Raines says he believes the company had unfairly suffered "collateral damage" to its public image and business from the debacle at Freddie Mac and that, "unlike Freddie Mac, we didn't do any of these things."
* Oct. 29: Fannie Mae discloses a $1.2 billion accounting error for the third quarter, which it says was due to a change in accounting rules and did not affect net income. The director of OFHEO, which supervises Fannie Mae and Freddie Mac, says the error underscores the need for a special review of Fannie Mae's accounting, which the regulators had begun in July.
2004
* May 6: OFHEO orders Fannie Mae to revamp its accounting to more closely reflect losses on some investments in mobile homes and aircraft leases, saying the company's accounting has violated standard principles in some instances.
* Sept. 22: Fannie Mae discloses the existence of a Securities and Exchange Commission investigation and acknowledges that OFHEO's review found serious accounting problems and earnings manipulation. The company's board hires attorney and former U.S. Sen. Warren Rudman, R-N.H., to conduct an investigation. Fannie Mae's share price drops 7 percent.
* Sept. 27: Under pressure from OFHEO, Fannie Mae agrees to boost its reserve cushion against risk by about $5 billion and to take other actions, including recalculating key transactions and tightening internal controls.
* Sept. 30: A separate criminal investigation of Fannie Mae's accounting by the Justice Department is confirmed.
* Oct. 6: Raines and Fannie Mae's chief financial officer, Timothy Howard, defend the company's accounting in sworn testimony at a congressional hearing, saying allegations of accounting improprieties and management misdeeds were a matter of interpreting complex rules.
* Nov. 15: Fannie Mae misses an SEC deadline for filing its third-quarter financial results after its independent auditor, KPMG, refuses to sign off on the report. The company acknowledges that some of its accounting practices don't comply with standard accounting principles and says it would show a net loss of $9 billion if the SEC decides it has improperly accounted for derivatives, the financial instruments used to hedge against interest-rate swings.
* Dec. 15: The SEC affirms OFHEO's findings and orders Fannie Mae to restate earnings back to 2001 because it violated accounting rules for derivatives and some prepaid loans.
* Dec. 21: Raines and Howard resign after being forced out by Fannie Mae's board. Daniel Mudd, the company's chief operating officer, is named interim chief executive.
2005
* Jan. 18: Fannie Mae cuts its first-quarter dividend by half, to 26 cents a share.
* Feb. 23: Additional accounting problems are disclosed, including serious deficiencies in internal controls.
* March 8: In an accord with the OFHEO regulators, Fannie Mae agrees to set up new policies to prevent faulty accounting and to split its chairman and CEO position into two jobs.
* March 17: The company discloses that it may have to record an additional loss of some $2.4 billion. The discovery of falsified signatures raises the possibility of criminal activity by company employees.
* Aug. 9: Fannie Mae says it likely won't complete the massive reworking of its accounting before the second half of 2006.
* Nov. 10: Fannie Mae discloses that new accounting errors have been uncovered and reaches outside the company to hire a new chief financial officer, Robert Blakely.
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