In a new damning report released this morning the Office of Federal Housing Enterprise Oversight slammed Fannie Mae for manipulating accounting rules to trigger millions of dollars in bonuses for senior executives from 1998 to 2004.The report details what OFHEO calls "an arrogant and unethical corporate culture." Acting OFHEO director James B. Lockhart slammed the GSE, noting, "The image of Fannie Mae as one of the lowest-risk and 'best-in-class' institutions was a facade. OFHEO notes that senior management -- including former CEO Franklin Raines and others, reaped maximum, undeserved bonuses, and hid their actions from the public. "They co-opted their internal auditors. They stonewalled OFHEO," Lockhart said.

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