More Heads Rolling at Fannie

Three executives who work in Fannie Mae's accounting department are stepping down, accepting temporary jobs at the government-sponsored enterprise as advisers. The three are: Jonathan Boyles, senior vice president, accounting; Janet Pennewell, SVP, financial reporting; and Sam Rajappa, SVP for risk operations. All three are cited in a report by the Office of Federal Housing Enterprise Oversight on the company's accounting scandal. The report notes that the GSE's "dysfunctional accounting policy development, key person dependencies, and poor segregation of duties were major contributors" to the company's accounting woes. Mired in a $9 billion accounting scandal, Fannie Mae said the three will serve in temporary roles at the company. On Jan. 21 Fannie said its SVP/controller, Leanne Spencer, was moving into an advisory role, but may stay with the company for up to a year. Ms. Spencer is also mentioned in the OFHEO report.