Fannie Mae Promises Changes

The Washington Times reports:

Fannie Mae's two top executives told lawmakers today that they are thoroughly overhauling and reforming the mortgage giant as it labors to emerge from its $11 billion accounting scandal.
The government-sponsored company pledged to complete by year's end the restatement of its earnings back to 2001 -- expected to be one of the largest restatements in U.S. corporate history.
Daniel Mudd, the president and chief executive, acknowledged that Fannie Mae had broken a public trust. But he said the company today was nearly unrecognizable from before.
"We have made changes. We are making progress. And we have much more to do," he said in testimony prepared for delivery at a Senate Banking Committee hearing.
"There is absolutely no routine, process or control anywhere in the company that is beyond the scope of overhaul and improvement to the highest standard," Mr. Mudd said.

You can count on Fannie Mae to still give generous campaign contributions to those who regulate it.