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Latest Business News

Fannie Mae to Close Its Foundation

Friday, February 23, 2007 8:18:11 PM
By MARCY GORDON

WASHINGTON (AP) - Remaking itself as it emerges from an accounting scandal, mortgage giant Fannie Mae said Friday it will shut down its high-profile charitable foundation this year and begin disclosing its corporate contributions.

Fannie Mae said it would continue its philanthropy and community improvement work through a new Office of Community and Charitable Giving within the government-sponsored company. It will focus notably on projects in the District of Columbia, the Gulf Coast region and touching on homelessness in several cities.

The moves by Fannie Mae were the latest in a series of actions changing its structure and the way it operates, some of them ordered by federal regulators in the wake of the scandal that erupted in September 2004. On Tuesday, Fannie Mae disclosed its decision to withhold $44.4 million in bonus money, tied to company earnings targets, from nearly 50 senior executives.


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