Feds Fine 'Arrogant and Unethical' Fannie Mae

Updated from 12:24 p.m.

Fannie Mae (FNM Quote) agreed Tuesday to pay $400 million to end a nearly three-year investigation into its accounting missteps. Regulators blasted the mortgage finance firm for fostering an "arrogant and unethical corporate culture."

The settlement marks the latest attempt by Fannie's new management team to close the book on a sordid chapter in the government-sponsored company's history. But a 348-page report by regulators, outlining years of accounting games at Fannie, will only provide more ammunition for the firm's many critics on Capitol Hill. ...