Fannie Mae-No Politics (FNMA)

[navycmdr]

Following the OFHEO and SEC investigations, Fannie issued restated financials and the $11 billion “understatement” suddenly disappeared.

But the spurious lawsuits charging Fannie’s CEO, CFO and controller with malfeasance and accounting fraud lingered on for another six years. Why?

Because it was politically incorrect for the high powered defense lawyers to say:

Judge, look at where the debits go and where the credits go and you can figure out that James Lockhart and Christopher Cox were lying through their teeth.

And a primary motivation for placing Fannie in conservatorship may very well have been that, in September 2008, the five year statue of limitatiions for the crime of lying to a Federal official had not yet passed with regard to the false statements made by a small cadre of officials at OFHEO and the SEC.