PROBLEM: After reviewing the facts of the article, it appears that Fannie Mae has an accounting problem, which may be due to inappropriate management decisions and lax internal controls of these decisions and practices. ALTERNATIVE #1: The first alternative in solving management's poor financial decisions at Fannie Mae, is to have the board of directors demand that top management executives at Fannie Mae step down from their duties, or the Federal regulators should terminate their ties …showed first 75 words of 552 total…

…showed last 75 words of 552 total…and successfully meeting their requirements it may have a positive perception of the company publicly and that it has nothing to hide and did nothing wrong. If proof is uncovered that management was involved in inappropriate accounting decisions then they will most likely be asked to step down, solving the poor management situation. In summary, cooperate with the OFHEO, and let the process take its due course. Let facts, not theories judge Fannie Mae's future.