WASHINGTON (AP) -- Fannie Mae, the nation's second largest financial institution, forced out two top executives as it struggles to deal with an accounting scandal which will likely force it to wipe out $9 billion in profits over the past four years.
Fannie Mae chief executive Franklin Raines and J. Timothy Howard, the company's chief financial officer, stepped down Tuesday after lengthy negotiations between the Fannie Mae board and the company's chief government regulator, the Office of Federal Housing Enterprise Oversight.
In a statement issued late Tuesday night, Raines said he had decided to leave to fulfill a pledge he made during congressional testimony in October that he would take the blame if serious accounting problems were found at the company.
apIs another Enron scandal coming?
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