Fannie Withholds $44M in Bonus Money

Fannie Mae's board has voted to withhold $44.4 million in bonus money slated for 46 former and current senior executives, including CEO Daniel Mudd.The bonus money -- in the form of stock rewards -- covers two different timeframes (2001-2003 and 2002-2004). The money will be taken into income by the congressionally chartered mortgage giant. (The first installment of the 2001-2003 was paid out but the rest was not.) Fannie Mae is still working its way through a $6 billion accounting scandal that came to a head in late 2004 when then chairman and CEO Franklin Raines and chief financial officer Timothy Howard were forced out. Regulators have accused Messrs. Raines, Howard and others of manipulating accounting rules to meet earnings and bonus targets. In total, 46 former and current executives are affected by the board's decision. Current CEO Mudd was slated to receive $4 million in stock bonus money. Mr. Raines was owed $11.2 million, Mr. Howard $3.3 million.