Regulator Seeks Legal Action Against Fannie Mae Ex-Officials

The Office of Federal Housing Enterprise Oversight yesterday filed suit against three former Fannie Mae top executives to recover more than $115 million in pay they received because the company's earnings were misstated. The complaint alleges the three executives "improperly manipulated earnings to maximize their bonuses." The three executives maintain they have done nothing wrong and plan to fight. (In 2003, OFHEO filed similar charges against former top officials of Freddie Mac.)