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→Fraudulent accounting exposed: Raines pays $24.7 million
{{Cquote|The image of Fannie Mae as one of the lowest-risk and `best in class' institutions was a facade...Our examination found an environment where the ends justified the means. Senior management manipulated accounting, reaped maximum, undeserved bonuses, and prevented the rest of the world from knowing.}}
{{Cquote|The image of Fannie Mae as one of the lowest-risk and `best in class' institutions was a facade...Our examination found an environment where the ends justified the means. Senior management manipulated accounting, reaped maximum, undeserved bonuses, and prevented the rest of the world from knowing.}}
The auditor's report stated executives moved profits from one year to the next to assure they would meet company goals to receive undeserved bonuses and accused Fannie Mae of taking large and sometimes unprofitable risks that were not revealed to investors. Raines was forced out. The auditors report was only the beginning of the revelations that shook the world.
The auditor's report stated executives moved profits from one year to the next to assure they would meet company goals to receive undeserved bonuses and accused Fannie Mae of taking large and sometimes unprofitable risks that were not revealed to investors. Raines was forced out. The auditors report was only the beginning of the revelations that shook the world.
In April 2008 Raines agreed to pay $24.7 million in a settlement with the U.S. government.<ref>[http://seattletimes.com/html/businesstechnology/2004358433_webraines18.html Franklin Raines to pay $24.7 million to settle Fannie Mae lawsuit,] By MARCY GORDON, ''The Associated Press'', April 18, 2008. </ref> Some proceeds from the settlement were used to help homeowners facing [[foreclosure]].
==Collapse and conservatorship 2008==
==Collapse and conservatorship 2008==