Fannie Mae: What's The Damage?

PROBLEM: After reviewing the facts of the article, it appears that Fannie Mae has an business relationship problem, which whitethorn be out-of-pocket 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 excursion their ties with the coif. ADVANATGE: This utility(a) could assist correct and improve the current financial scrutiny the company is currently under. Since it is believed that certain top train executives allowed or highly-developed inappropriate accounting practices for either individualised gains or to over-exaggerate sugar growth, these people should be no prolonged be involved in the direct decisions of the company. This whitethorn embed a actor within the company that these types of actions will not be tolerated contemptible forward. Also, investors may feel relieved penetrating 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 needs solve the poor ancient accounting decisions. It may similarly be hard to terminate all that had their hands in this problem and then thither is the responsibility of hiring a raw management team.

ALTERNATIVE #2: The befriend alternative to the accounting problem is for the Fannie Mae manageme nt team to accommodate to recalculate, resta! te and localise earnings that were reported in the defy three diachronic period. ADVANTAGE: Restating and adjusting the past three historic period 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) closure to zero. DISADVANTAGE: If they restate and adjust the past three years earnings and it... If you want to get a full essay, evidence it on our website: OrderCustomPaper.com

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