Former Fannie chief agrees to $24.7 million settlement

April 18, 2008 11:14:11 AM PDT
Former Fannie Mae chief Franklin Raines and two other top executives are paying a total of nearly $31.4 million in a settlement with the government over their roles in a 2004 accounting scandal. Raines, former Fannie chief financial officer Timothy Howard and former controller Leanne Spencer were charged with manipulating earnings over a six-year period.

Raines, a prominent Washington figure who was President Clinton's budget director, has agreed to pay $24.7 million, including a $2 million fine and relinquishing of company stock options valued at $15.6 million.

The amounts that Raines, Howard and Spencer are paying under the settlement are far less than what the government was seeking when it sued them in December 2006.