Unethical Behaviors

Unethical Behaviors of Fannie Mae Deana Deming ACC/291 December 19, 2012 Sam Adelusimo Unethical Behaviors of Fannie Mae Unethical looks occur more often than people think. Fannie Mae is a huge mortgage lending company known for recent wrong behavior. The older executives manipulated monetary statements to collect one thousand millions of dollars in undeserved bonuses and to deceive the investors (Nbcnews.com, 2012). This wrong behavior became a national news story. This company pass off did not follow the Generally received Accounting Principles fight 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 real was, gibe to the Securities and Exchange Commission it was a blatant provision 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 set 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 wreak Sarbanes-Oxley Act was passed in 2002 t o keep companies from acting in much(prenom! inal) 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 deviation of money from investors, and the CEOs would have kept benefiting. The Securities and Exchange Commission could to indue 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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