Fannie's Corporate Governance Praised
Fannie Mae has received a corporate governance rating of 9 from Standard & Poor's.
The rating system ranges from 1 to 10. The strong rating for the secondary market giant was issued last week, amid attacks on Fannie (and Freddie Mac) from competitors at FM Watch and The Financial Services Roundtable. (See related story.)
In issuing the rating, S&P said Fannie scored "strongly" or "very-strongly" in four key areas: financial transparency and information disclosure, ownership structure and influence, shareholder rights, and board structure and process.
In a statement, S&P notes, "In the area of financial disclosure, despite the company's historical exemption from registering and filing disclosures with the SEC, Fannie Mae's voluntary disclosures generally meet and in some cases exceed those of its SEC-registered peers."
In the past, FM Watch has criticized the GSEs for not disclosing enough financial information about its finances.
FM Watch's members include financial service firms that, to some degree, compete against the GSEs, including GE Mortgage Insurance, Household International, J.P. Morgan Chase and Wells Fargo Bank.
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