The board of embattled mortgage finance enterprise Fannie Mae met on Sunday and has apparently decided that Chief Financial Officer Timothy Howard will step down, the Wall Street Journal reported on Monday.
One person familiar with the situation said the board “appeared” to have decided that Howard will leave, though the terms of his expected departure have yet to be settled, according to the Journal.
No decision was made on the fate of Chief Executive Franklin Raines, people close to the situation told the newspaper.
Fannie Mae was not immediately available for comment.
The board met to discuss whether to make changes to top management after the U.S. Securities and Exchange Commission said Fannie Mae had failed to comply with accounting rules.
Raines has told friends and colleague that he has done nothing that should lead to a dismissal, one person familiar with the situation said to the WSJ. Raines and Howard told Congress in October they believed they were following correct accounting procedures.