Ex-Fannie Mae executives agree to fines

Fannie Mae's former chief executive agreed to pay $24.7 million to settle a suit stemming from an accounting scandal that rocked the lender, officials said.

The Financial Times reported Franklin Raines has agreed to pay $2 million in fines and donate proceeds from the sale of $1.8 million of Fannie Mae stock to homeowner-assistance programs.

He must also return $5.3 million in other benefits and surrender claims to options on Fannie stock that were valued at $15.6 million when issued, the newspaper reported.

The U.S. Office of Federal Housing Enterprise Oversight also said former Fannie Mae Chief Financial Officer Timothy Howard agreed to pay $6.4 million, while Leanne Spencer, the company's controller, will pay a $275,000 fine.

In accepting the settlement, the men have not admitted to any wrongdoing. Fannie Mae is a government-sponsored lender.

The Office of Federal Housing Enterprise Oversight sued the three former executives in December 2006 to get them to pay more than $215 million in fines and other penalties. The agency alleged they had improperly manipulated earnings to maximize their bonuses.

(UPI)

Police, protesters clash ahead of G8 in Italy

Lady Liberty statue reopened to freedom tourists

New swine flu case takes India\'s tally to 129

Mango festival starts in Haryana

Revocation of AFSPA should be left to Centre: Ansari

President urges civil servants to have a development-centric approach

Serena turns tables on Venus for third Wimbledon title