Here comes crash: Major Changes Set for Backer of Mortgages (NYT)

[AP]

There are too many clues in this article for a clip to do justice.

Since this might be the first big domino to fall, it might be worth the time for you all to read it all the way through.

Fannie Mae, the nation's largest mortgage buyer and a financial juggernaut that affects the lives of tens of millions of home buyers, agreed yesterday to major changes in its accounting and management practices in an unusual deal reached after a week of negotiations with the company's federal regulator.

The agreement comes after a scathing report released by the regulator last week that cited accounting irregularities and earnings manipulation that helped enrich the company's senior executives and presented an apparently false portrait of Fannie Mae's financial well-being to the public.

http://www.nytimes.com/2004/09/28/business/28fannie.html

[loudsue]

1. You're right about that, AP! This is going to be a BIG domino to fall....

Grab the life-boats! Pack away some provisions. Fannie's been asking for it for a long time. When she goes down, we're all going to feel the 'thud'.

:kick::kick::kick::kick:

[AP]

2. kick.

Yep.

It looks like the Feds are just giving the execs enough time to bail out of FNMA so they can get their millions.

[w4rma]

3. And here we go. Stock market crash, incoming. (nt)