Fannie Mae investors seek compensation

The Boston Globe reports:

Fannie Mae investors should be entitled to about $10 billion in compensation for losses stemming from accounting manipulation at the mortgage finance company, Ohio Attorney General Marc Dann said yesterday .

"It was not until the fall of 2005 that people had an actual sense of the magnitude of the restatement," Dann said in an interview after a hearing in US District Court in Washington. Fannie Mae, the largest source of money for US home loans, completed a restatement in December of earnings from 2001 through June 2004.

Sounds like a racketeering enterprise.