Fresh Scandals (Fannie Mae) Could Thwart Reform Backlash

[Robbien]

By Brendan Intindola

NEW YORK (Reuters) - The unfolding government investigation into Fannie Mae's accounting may have destroyed hopes some U.S. business leaders had harbored of watering down the corporate reforms of recent years.

CEOs from public companies have in recent months complained about the cost in money and time of complying with the reforms introduced after the series of corporate scandals that began with the collapse of energy trader Enron Corp. in 2001.

And there were signs some CEOs had expected they might get a more sympathetic hearing on the question in Washington D.C. if President Bush, and the Republicans in Congress, come out in front in November's elections.

"Hopefully, they'll put something that's more practical in place for companies to deal with it. It's a pretty good expense for companies," Daniel Ustian, CEO of truck maker Navistar International Corp. said at the Reuters Autos and Manufacturing Summit in Detroit earlier this month. His comments were echoed by some other CEOs attending the event.

But a rush of disclosures about accounting and corporate governance problems at a wide variety of companies, in particular a regulator's report alleging extensive accounting irregularities at Fannie Mae, has deflated the argument for regulatory rollback.

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http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=6395563

[readmylips]

1. PBS had a program on Fannie Mae and who's behind...

the Fannie Mae allegations. Without Fannie Mae most people in the US would not own a home. Fannie Mae guarantees low income loans for poor people.

The people behind the allegations are private Mortgage companies wanting to breakup Fannie Mae. Private mortgage companies want to control home loans for the poor, the same way Investment Firms want control of the Social Security trust.

Bush and repig Congress support the breakup of Fannie Mae and of course, we know how much they want their Investment Firms to steal the SS funds.

[readmylips]

2. To Add: Director of Fannie Mae is a Democrat best friend ...

to Al Gore. Bush and criminals are behind the breakup of Fannie Mae.