Wall Street Journal (04/18/08) P. A2; Hagerty, James R.
Federal regulators have reached a legal settlement with Franklin Raines, Timothy Howard and Leanne Spencer--the former Fannie Mae senior executives who were alleged to have had roles in the company's accounting scandal in 2004. Terms of the settlement were not revealed, as the Office of Federal Housing Enterprise Oversight (OFHEO) declined to comment and lawyers for Raines, Howard and Spencer could not be reached for comment. OFHEO launched a case in administrative law court in December 2006 that sought to recover more than $115 million in bonuses from the former officials and also pursued fines of more than $100 million, alleging that the execs "improperly manipulated earnings to maximize their bonuses." Former CEO Raines, former CFO Howard and former controller Spencer denied the charges.
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