Fannie Mae: No Heads Will Roll
So Fannie and Freddie were taken over by the government yesterday. You’d think this would be done because the government thought they could run things better than the existing management. It sounded like that because, among other reasons, mistakes had been made:
There were reports that auditors called in by Treasury and FHFA had found accounting irregularities at the two firms and that their capital base was smaller than expected.
At first, Paulson had talked in terms of an equity investment in the two firms. But after the review, a full-scale takeover of the two firms was seen as the only option.
We know that both CEOs will be replaced, but are staying for the "transition". Does this mean, then, that other heads will roll? After all, you’d think that SOMEONE in these giant organizations must have made a mistake serious enough to warrant dismissal. Aren’t there economists and […]
Original post by twist
