Tuesday, April 12, 2005

Fannie Mae: The $30B Scandal That TV Forgot

WHY isn't TV news giving the Fannie Mae scandals the same level of coverage that it gave to Enron?

Fannie Mae, the government-sponsored mortgage association, has been battling a mounting scandal since last year. It has accounting errors of about $11 billion. That's more than 19 times larger than Enron's $567 million error. Fannie faces a Justice Department inquiry, an SEC investigation and an Office of Federal Housing Enterprise complaint.

The mess has caused the departure of CEO Franklin Raines and several other top executives. And Fannie Mae stock has dropped roughly 30 percent, from nearly $80 a share to around $55. That's an added loss of more than $20 billion.

All of this is news — $30 billion worth of news — but the only journalists out there covering it on a regular basis are print reporters. TV news is out to lunch...
Read more from The New York Post.
Thank you to Walter Yannis and Original Dissent.


larswife said...

Another BIG story that's getting buried is the current SEC investigation into the shenanigans (overstating earnings (sound familiar?) to the potential tune of $17B) at AIG, one of the biggest (if not THE biggest) insurance companies in the world. Warren "I told them everything I know" Buffett just finished testifying before the SEC, but they have yet to hear from the ex-headhoncho, Maurice "Hank" Greenberg (why do Jewish people feel the need to Anglicize their name? Sorry; another topic for discussion).

Mrs. Blessed said...


Thank you for the heads up on that, larswife. It is going to get much worse before it gets better.