Deana Deming
ACC/291
December 19, 2012
Sam Adelusimo
Unethical Behaviors of Fannie Mae
Unethical looks find more often than people think. Fannie Mae is a huge mortgage lending company known for recent wrong behavior. The cured executives manipulated financial statements to collect millions of dollars in undeserved bonuses and to deceive the investors (Nbcnews.com, 2012). This unethical behavior became a national news story. This company clear did not follow the Generally Accepted Accounting Principles charge in place by the Securities and Exchange Commission or SEC. Fannie Mae has been investigated and attractived for these unethical behaviors but never admitted and guilt.
Unethical Behavior
The unethical behavior Fannie Mae acted in was a clear falsification of the financial statements so the CEOs could receive bonuses and make investors thinks the business was doing better than it actually was, gibe to the Securities and Exchange Commission it was a blatant cooking of the books. This resulted in a $400 civil penalty, a $727 billion punk on the mortgage holdings by the company, and a $350 million fine assed by the SEC (Nbcnews.com, 2012). The company also had to reset its income hold to the 2001 amount as part of the penalty (Nbcnews.com, 2012).
Fannie Mae did not energize to admit any wrong-doing in the acceptance of these penalties.
Sarbanes-Oxley Act
Sarbanes-Oxley Act was passed in 2002 to keep companies from acting in such a manner. Unfortunately, it hush goes on. It states that companies no matter the size or worth essential comply with the federal Generally Accepted Accounting Principles or GAAP rules. Without this Act, Fannie Mae could eat caused more loss of money from investors, and the CEOs would have kept benefiting. The Securities and Exchange Commission could to put a menstruum to this. Sarbanes-Oxley Act of 2002...If you want to get a full essay, invest it on our website: Ordercustompaper.com
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