Fannie Mae once had three top executives who have been sued over alleged accounting irregularities. They are its former CEO, former CFO, and former Controller. The accounting irregularities seem to have something to do with why they are all "former" executives of Fannie Mae.
Fannie Mae had agreements with these executives before they became "former" executives of Fannie Mae. Once they became "former" and no longer "current" executives, Fannie agreed to pay "the legal costs associated with shareholder suits brought against them in the wake of the accounting scandal." Gretchen Morgenson, "Fair Game/They Left Fannie Mae, but We Got the Legal Bills" p. 1, col. 2 (New York Times Nat'l ed., "SundayBusiness" Section, Sunday, September 6, 2009).
As has been more widely reported, the Federal Government 'took over' Fannie. When it did so, it took over the cost of paying Fannie's agreements with the Three Former Fannies. See id.
At an average cost of $200,000.00 a Deposition, 33 Depositions of people other than the Three Former Fannies have been taken and paid for by Federal Taxpayers -- you. The total cost of defense for those items is $6.3 Million or $6,300,000.00. That legal bill is for ten (10) months. Id.
That does not include an additional $16.8 Million or $16,800,000.00 that "was paid in the period to cover legal expenses of workers at the Office of Federal Housing Enterprise Oversight, Fannie's former regulator." The reason for these additional Millions in legal fees? "These costs are associated with defending the regulator in litigation against former Fannie executives." Id.
More to come. Much more.
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