Fannie's Hedging Deals Look Thorny

"The atmosphere and culture ... is one of intimidation, restraint of dissenting opinions, and pressure to be part of the 'Team,' giving Chairman Franklin Raines and Vice Chairman Tim Howard the numbers the Office of the Chairman desired to please the markets," according to Barnes.

If the office of the chairman did in fact misuse FAS 91 to help earnings, there is every reason to suppose that it could have done the same with FAS 133.

Fannie said Tuesday that the Justice Department told the company "to preserve certain documents, including documents relating to the matters discussed in the OFHEO report." No doubt the feds are heading straight for the FAS 133 file.