WASHINGTON - (10/07/04) -- Top executives at Fannie Mae deniedallegations of cooking the books during a highly chargedcongressional hearing Wednesday, telling angry lawmakers theSecurities and Exchange Commission will be the final judge ofwhether they engaged in wrongdoing. The top Fannie executives,including CEO Franklin Raines, CFO Timothy Howard and AnnKorologos, chairman of the board, blamed disagreements over arcaneaccounting rules that prompted allegations by the company's chiefregulator, the Office of Federal Housing Enterprise Oversight, thatthe company manipulated its finances to please Wall Street andqualify top executives for multi-million dollar bonuses "We candiscuss forever, but the SEC's going to decide," Raines toldmembers of the House Financial Services Subcommittee on GovernmentSponsored Enterprises. Prior to Raines' testimony, Armando Falcon,director of OFEHO, detailed allegations that Fannie auditorsstruggled to meet previously agreed-upon profit targets, sometimesachieving them by fractions of a cent, which entitled topexecutives to lucrative bonuses. Raines almost broke down near theend of a four-hour grilling by committee members, telling them hisdaughter offered him support through the spreading publiccontroversy, "when I should be offering her support," he said,almost breaking into tears.
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
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Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
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In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
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