Tuesday, May 23, 2006

Fannie Lereah

Yep, that's what he (David Lereah, chief economist for the National Association of Realtors) said. Check it out over at the Bubble Meter blog, or the Sonoma Housing Bubble blog, or the Housing Panic blog,...

And be sure not to miss the blistering report (overview here; warning: both are PDFs; kudos to the Bubble Meter blog for these links) by the Office of Federal Housing Enterprise on Fannie Mae where it is said:
...an arrogant and unethical corporate culture where Fannie Mae employees manipulated accounting and earnings to trigger bonuses for senior executives from 1998 to 2004...

...a company whose prestigious image was phony...

The image of Fannie Mae as one of the lowest-risk and 'best in class' ’ institutions was a facade...

...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...
Welcome to what may be the largest scandal in our life time; Enron's got nothing on Fannie Mae.

2 Comments:

Blogger David said...

thanks for the mention. :-)

David
Bubble Meter Blog

May 23, 2006, 1:07:00 PM  
Blogger cajun100 said...

Ah yes, the Fannie Mae "scandal", currently buried under a basket topped by bundles of bad news from Washington. Yet another in a long line of "executive" and "enterprise" scams foisted upon and paid for ultimately, by the long-suffering taxpayer. Why be surprised? Think it's mainly "big government? It is all available for viewing right here at the local level, with featherbedding and pension scheme bloating in public agencies and routine tax avoidance and employment crimes by the business sector.
Methinks that this old grad of economics at UC missed something along the way -- the courses in "how to profit at the public's expense". I sure would have done better as an "enterprise executive" myself, and from what I read these days, certainly not worked as hard to get there.
Thanks for the links, this is important stuff.

May 23, 2006, 4:30:00 PM  

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