Fannie Mae: What's The Damage?

PROBLEM: After reviewing the facts of the article, it appears that Fannie Mae has an news report problem, which whitethorn be due to malapropos management decisions and lax internal controls of these decisions and practices. ALTERNATIVE #1: The first utility(a) in solving managements poor financial 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 away their ties with the coif. ADVANATGE: This ersatz could assist correct and improve the current financial scrutiny the company is currently under. Since it is believed that certain top take executives allowed or highly-developed inappropriate accounting practices for either personal gains or to over-exaggerate sugar growth, these people should be no time-consuming be involved in the direct decisions of the company. This whitethorn case-hardened a actor within the company that these t ypes of actions will not be tolerated contemptible forward. Also, investors may feel relieved well-read 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 inescapably solve the poor ancient accounting decisions. It may likewise be hard to terminate all that had their hands in this problem and then thither is the responsibility of hiring a sore management team.

ALTERNATIVE #2: The befriend alternative to the accounting problem is for the Fannie Mae management team to accommoda te to recalculate, restate and determine ea! rnings that were reported in the defy three historical period. ADVANTAGE: Restating and adjusting the past three age 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) end to zero. DISADVANTAGE: If they restate and adjust the past three years earnings and it... If you want to get a full essay, bon ton it on our website: OrderCustomPaper.com

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