Fannie Mae, wasting taxpayers' money and time
By Mike DeWine
Friday, February 18, 2011; 12:00 AM
In November 2004, the state of Ohio - on behalf of more than a million teachers and public employees - filed a securities fraud class-action lawsuit against Fannie Mae, three former senior executives of the housing giant, and its auditor, KPMG. The suit contends that the defendants defrauded more than 30 million Americans - mostly public service employees such as teachers, firefighters and police officers - costing them nearly $9 billion in lost pension funds.
Six-plus years later, the case continues. Fannie and its former executives have been using U.S. taxpayer dollars to over-lawyer the case and delay justice. Fannie Mae admits to spending at least $132 million so far on legal fees, and continued apace, the total cost to taxpayers could reach $410 million.
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