Report: KPMG to Countersue FNMA

London-based Accountancy Age is reporting in conjunction with Reuters this morning that KPMG will countersue US mortgage giant Fannie Mae. Last week, Fannie Mae announced it had filed suit against KPMG for its role in the company’s multi-billion dollar accounting scandal. It remains unclear what counterclaims the former auditor for Fannie Mae is currently pursuing. Fannie Mae has been largely panned for allegedly altering earnings to trigger management bonuses in 2004; the mortgage conduit was heavily criticised in a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) and the Securities & Exchange Commission for its ‘unethical corporate culture’. In addition to other penalties, Fannie Mae agreed to a $400 million fine but has not formally admitted wrongdoing.

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