Ex-Fannie CEO Denies Charges in Scandal

Former Fannie Mae chairman and CEO Franklin Raines has denied all wrongdoing in regard to allegations that he may have played a role in manipulating accounting rules at the mortgage giant.In a statement issued late Tuesday attorney Robert Barnett said Mr. Raines "has repeatedly stated that he never authorized, encouraged, or was aware of violations of Generally Accepted Accounting Principles (GAAP) at Fannie Mae for the purpose of smoothing earnings, reaching bonus targets, or for any other improper reason." Mr. Barnett added, "The facts on the record and conclusions from previous reports support this statement." On Monday two government agencies formally accused Fannie of accounting fraud in regard to its $10.8 billion earnings restatement scandal, including numerous violations of GAAP. Under pressure from the Office of Federal Housing Enterprise Oversight, Fannie's directors forced Mr. Raines out of the company in December 2004.