To prepare myself for a guest lecture to a class at the University of Kansas I did some research about the House Financial Services Committee, now chaired by Jeb Hensarling (R. TX). I was pleased to learn that the Committee’s home page emphasizes the key role that accounting control fraud played at Fannie and Freddie. The home page has a “spotlight” section designed to draw the reader’s eye to a short series of documents designed to support passage of the Protecting American Taxpayers and Homeowners (PATH) Act, which focuses on eliminating Fannie and Freddie. The documents largely stress that Fannie and Freddie were accounting control frauds.
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