Whether Fannie Mae’s accounting reflected a deliberate violation of the rules—as the Office of Federal Housing Enterprise Oversight contends—or a difference of opinion among accountants—as Fannie argues—has become a matter of considerable importance and could be the determining factor in whether Fannie's current management retain their positions. Moreover, there is...

Fannie Mae's recent 10-K annual report filing with the Securities and Exchange Commission showed losses on derivatives of approximately $7 billion, a very large loss, but considerably less than press speculation. But the 10-K filing did not entirely put to rest the many questions about Fannie's accounting and whether the...