WASHINGTON - (11/11/05) -- Fannie Mae, still struggling tountangle an $11 billion accounting scandal, reported Thursday thatnew accounting errors have been uncovered, as it reached outsidethe company to hire a new finance chief. Fannie Mae reported thatnew accounting problems that have been uncovered in several areas,including recording losses on mortgages and the mortgage-backedsecurities it guarantees as well as expenses for financing somereal estate investments and accounting for low-income housing taxcredits and mortgage insurance. The company did not provide anestimate of the amounts of the errors. The announcement came a dayafter the company's sister secondary mortgage company Freddie Mac,also struggling with multi-billion dollar accounting problems,reported it will be forced to shave $220 million off of previouslyannounced first half earnings because of a computer error. FannieMae said it has hired as its new chief financial officer RobertBlakely, executive vice president and CFO of MCI , which emergedfrom bankruptcy following a multibillion-dollar accounting scandalat the former WorldCom Inc.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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