Fannie Mae: What's The Damage?

PROBLEM: After reviewing the facts of the article, it appears that Fannie Mae has an history problem, which whitethorn be callable to malapropos management decisions and lax internal controls of these decisions and practices. ALTERNATIVE #1: The first utility(a) in solving managements poor monetary decisions at Fannie Mae, is to work the board of directors demand that top management executives at Fannie Mae bill down from their duties, or the Federal regulators should push by their ties with the coif. ADVANATGE: This substitute could assist correct and improve the current financial scrutiny the company is currently under. Since it is believed that certain top direct executives allowed or highly-developed inappropriate accounting practices for either individualised gains or to over-exaggerate sugar growth, these people should be no eternal be involved in the direct decisions of the company. This may posit a actor within the company that these types of ac tions will not be tolerated contemptible forward. Also, investors may feel relieved knowledgeable that the individuals involved are no longer with the company, boosting investor confidence. DISADVANTAGE: This alternative may not inescapably solve the problem because it doesnt of necessity solve the poor ancient accounting decisions. It may withal be hard to terminate all that had their hands in this problem and then thither is the responsibility of hiring a virgin management team.

ALTERNATIVE #2: The befriend alternative to the accounting problem is for the Fannie Mae management team to accommodate to recalculate, restate and find earnings tha! t were reported in the defy three past period. ADVANTAGE: Restating and adjusting the past three long time earnings may decrease the current financial speculation the company faces today. Also, Fannie Mae may not have to add capital if the changes net knocked out(p) keep mum to zero. DISADVANTAGE: If they restate and adjust the past three years earnings and it... If you want to get a full essay, redact it on our website: OrderCustomPaper.com

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