Wednesday, March 09, 2005

Way To Go, OFHEO!

Fannie Mae better watch out, or it's really gonna be in trouble.

As reported in today's Wall Street Journal, Fannie's regulator--the Office of Federal Housing Enterprise Oversight (OFHEO)--announced new requirements. And boy, are they tough.

For one thing, the new requirements would have Fannie Mae adopt policies "limiting employees' ability to alter database records."

Yes, that's right. No more altering database records at Fannie Mae!

But it gets better: OFHEO also wants Fannie to adopt policies which "ban falsified signatures on accounting journal entries."

Way to go, OFHEO! They finally get around to--after all these years--deciding that they don't want the lynchpin of our national housing market to go around letting its people falsify accounting documents.

Man, when the Feds want to get tough, they really come down hard, don't they?

Why Fannie Mae is still in business, with its Congressional charter and its overpaid executives and its fake accounting, is beyond me. But that's my opinion. The rest of this piece, is, unfortunately, all too true.

Jeff Matthews
I'm Not Making This Up

1 comment:

Foresight said...

Jeff,

Not sure I agree. In paper it might seem like OFHEO is not comming down hard enoupgh or regulating sufficiently. I can tell you though, that haveing been working on various Sarbanes-Oxley initiatives, things have gone to the extreme. Companies are being subjected to overregulation which is not only crippling their ability to conduct fair business, but also makeing it impossible for them to survive.