Funny business at Fannie Mae: how'd those Clintonites get so rich?

National Review, June 19, 2006 by Byron York

That didn't work, and, as a result of the investigation, Fannie Mae has agreed to pay $400 million in penalties. The company is now under criminal investigation worried that reform might harm Fannie Mae's ability to provide mortgages to low- and middle-income homebuyers. Sununu's bill was approved in the banking committee last year, but only on a straight party-line vote.

Now, however, there is the OFHEO report, which will probably make it impossible for anyone to oppose reforming Fannie Mae. "It's not a very smart move politically to stand up and defend people who manipulate earnings to get $50 million bonuses," says Sununu.

So look for reform to happen, with the support of Republicans and Democrats. It took a long time, and $10.6 billion in overstated earnings, and a scathing report from regulators, but things are finally moving along.