The board of Fannie Mae, which has been told to restate its earnings, will discuss at the weekend whether the U.S. mortgage finance giant’s chairman and finance chief should keep their jobs, the Wall Street Journal reported on Friday.
The board met on Thursday to talk about the fate of Chairman Franklin Raines and Chief Financial Officer Timothy Howard, people familiar with the situation told the newspaper.
No decision was made, so the board will meet again over the weekend, someone briefed on the situation said, according to the Journal.
Fannie Mae is working with U.S. regulators to deal with the ramifications of the U.S. Securities and Exchange Commission’s decision earlier this week that the company must restate earnings.
The company has said it may have to report after-tax losses of as much as $9 billion over 2001 to 2004, if regulators’ concerns about its accounting are upheld.
The SEC’s determination confirms the seriousness of oversight and corporate governance problems at Fannie Mae, lawmakers say.
The determination is also in the interest of those, including Federal Reserve Chairman Alan Greenspan and the Bush administration, who want to control Fannie Mae’s growth, according to the Journal.
Raines and Howard told Congress in October that they and their auditor, KPMG, believed they were following proper accounting procedures.
The company’s stock closed on Thursday down $1.39, or 1.97 percent, at $69.30.