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Corporations and securities brief ~ Fannie Mae faces new accounting troubles

[JURIST] Leading Wednesday's corporations and securities law news, Fannie Mae's federal regulator, Office of Federal Housing Enterprise Oversight (OFHEO) [official website], has found additional problems with the company's accounting practices. The OFHEO has raised concerns with the company's securities and loan accounting, consolidations, accounting for commitments and practices to smooth certain income and expense accounts. Fannie Mae [corporate website] also announced OFHEO has allowed a three month delay in the company's attempt to build a 30% capital surplus. Read the Fannie Mae press release. AP has more.

In other news...

  • Hershey Foods Corp. [corporate website], the nation's largest candymaker, announced in a regulatory filing with the SEC that it wants to change its name to "The Hershey Co." The Hershey Trust Co. will continue to hold a controlling stake in the company. AP has more.

  • According to a broker disclosure form filed with the National Association of Securities Dealers [official website], the SEC may recommend charges against former Bear Stearns [corporate website] broker Mark Hurant for his role in improper mutual-fund trading. CBSMarketWatch has more. In other news, Bear Stearns senior managing director Michael Zackman may face civil charges over his assistance to hedge funds and brokers who were engaging in abusive trading of mutual fund shares. Zackman denies the charges. In total, six former and current Bear Stearns employees are facing civil charges related to trading misconduct. The Street.com has more.

  • Medco Health Solutions Inc. [corporate website], one of the nation's largest pharmacy benefits managers, announced it will buy Accredo Health Inc. [corporate website] , a distributor of specialty drugs and services, for about $2.2 billion in cash and stock creating the nation's largest specialty pharmacy business. Read the Accredo Health press release. AP has more.

  • A Dell customer is suing the world's largest personal computer maker for pushing consumers into high-interest financing schemes, false advertising and bait-and-switch practices, fraud and deceit in its sales and advertising representations and breach of contract for unilaterally modifying terms and conditions. Dell Inc. [corporate website] had no comment on the suit. CNN has more.
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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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