A Fannie Mae Settlement Is Reported

The New York Times reports:

the giant mortgage buyer, is expected to pay more than $400 million today as part of a settlement to resolve claims that executives manipulated earnings in the 1990's so they could receive bigger bonuses, two people briefed on the situation said yesterday.

A government official confirmed Fannie's settlement with the Office of Federal Housing and Enterprise Oversight, the company's chief safety and soundness regulator, and the Securities and Exchange Commission, which oversees its books. Neither person would agree to be identified because the settlement had not been formally announced.

Officials from Fannie Mae, Ofheo, and S.E.C. declined to comment last night. The announcement is expected at a news conference this afternoon.

The settlement comes as Ofheo publicly releases a comprehensive report that is expecting to level scathing criticism at Fannie's accounting practices and management culture.

More powerful than Enron,maybe even Superman.