US regulators to settle with ex-Fannie execs-source

Reuters reports:

U.S. federal regulators will announce a settlement on Friday with former Fannie Mae (FNM.N: Quote, Profile, Research) executives over their alleged roles in a 2004 multibillion-dollar accounting scandal, a person familiar with the settlement said on Thursday.

The settlement will conclude two years of litigation brought by Fannie's regulator, the Office of Federal Housing Enterprise Oversight, or OFHEO, against the mortgage company's former chief executive Franklin Raines, and its former chief financial officer Timothy Howard, this person said.

Leanne Spencer, who was the mortgage company's controller is also part of the settlement, according to a report in The Wall Street Journal.

The terms of the settlement were not revealed.

We are going to find out how how effective Fannie's campaign contributions really are.