Fannie Exceeds Cap Surplus

At the end of September Fannie Mae met -- and exceeded -- a 30% capital surplus imposed on it by the Office Federal Housing Enterprise Oversight.OFHEO said the government-sponsored enterprise achieved a $9.1 billion surplus through earnings retention and asset sales. The agency also said Fannie exceeded the surplus by $752 million. The GSE is working its way through an $11 billion earnings restatement scandal and is the subject of investigations by the Justice Department, the Securities and Exchange Commission, and OFHEO. Later this year or early next year, Fannie is expected to release the results of an internal investigation into the scandal, which resulted in the departure of its politically connected chairman and chief executive officer, Franklin Raines, and longtime chief financial officer Timothy Howard. The investigation is being spearheaded by former U.S. Sen. Warren Rudman.