Fannie Mae Case
Use strategic thinking to outline a recommended alternative for Franklin Raines to use in deciding the strategic direction of Fannie Mae. It is 1998 and you are about to take over as CEO of Fannie Mae. Use the two cases on Fannie Mae in the Course Documents (Fannie Mae A and Fannie Mae B abbreviated) for background on Fannie Mae. Exactly how should Franklin Raines proceeded in terms of strategy development what subsequent implementation steps should he have adopted. The Strategic Audit process should be applied in outline form (see course documents). Put yourself in the 1998 timeframe and draw on the concepts and ideas of the classical strategists i.e. Sun Tzu, Clausewitz etc.Case is in Course Documents.
MGT 553 Ethics Case
Outline
Current …show more content…
The Office can also fail to adhere to standards established by both the Institute of Internal Auditors and the Committee of Sponsoring Organizations, including those pertaining to auditor proficiency and the exercise of due professional care. The Office can also fail to meet the responsibilities assigned to it by Fannie Mae’s Board of Directors. Internal audit reports prepared by the Office can consistently understate problems and overstate work …show more content…
Beginning in October 1979, large increases in interest rates raised Fannie Mae’s interest expense, and the Enterprise lost money in four of the six years between 1980 and 1985. Fannie Mae began guaranteeing mortgage-backed securities (MBS) in 1981 and, after interest rates fell, became profitable again in 1986. In 1987 the Enterprise doubled its EPS, starting a 17-year pattern that continued through 2003. Through the early 1990s, Fannie Mae sustained rapid profit growth primarily by expanding the share of conventional single-family mortgage debt outstanding in the U.S. financed with its guaranteed MBS. Fannie Mae’s financial success gave senior management steadily increasing amounts of money to use in efforts to influence the regulatory and legislative processes. Over the years the Enterprise compiled a remarkable track record of achieving its political
MGT 553 Ethics Case
Outline
Current …show more content…
The Office can also fail to adhere to standards established by both the Institute of Internal Auditors and the Committee of Sponsoring Organizations, including those pertaining to auditor proficiency and the exercise of due professional care. The Office can also fail to meet the responsibilities assigned to it by Fannie Mae’s Board of Directors. Internal audit reports prepared by the Office can consistently understate problems and overstate work …show more content…
Beginning in October 1979, large increases in interest rates raised Fannie Mae’s interest expense, and the Enterprise lost money in four of the six years between 1980 and 1985. Fannie Mae began guaranteeing mortgage-backed securities (MBS) in 1981 and, after interest rates fell, became profitable again in 1986. In 1987 the Enterprise doubled its EPS, starting a 17-year pattern that continued through 2003. Through the early 1990s, Fannie Mae sustained rapid profit growth primarily by expanding the share of conventional single-family mortgage debt outstanding in the U.S. financed with its guaranteed MBS. Fannie Mae’s financial success gave senior management steadily increasing amounts of money to use in efforts to influence the regulatory and legislative processes. Over the years the Enterprise compiled a remarkable track record of achieving its political