Fannie Mae 2008 Annual Report Download - page 410

Investigation by the Securities and Exchange Commission
On September 26, 2008, we received notice of an ongoing investigation into Fannie Mae by the SEC
regarding certain accounting and disclosure matters. We are cooperating fully with this investigation. On
January 8, 2009, the SEC issued a formal order of investigation.
Investigation by the Department of Justice
On September 26, 2008, we received notice of an ongoing federal investigation by the United States Attorney
for the Southern District of New York into certain accounting, disclosure and corporate governance matters. In
connection with that investigation, Fannie Mae received a Grand Jury subpoena for documents. That subpoena
was subsequently withdrawn. However, we have been informed that the Department of Justice is continuing an
investigation. We are cooperating fully with this investigation.
Committee on Oversight and Government Reform Hearing
On October 20, 2008, we received a letter from Henry A. Waxman, Chairman of the Committee on Oversight
and Government Reform of the House of Representatives of the Congress of the United States that the
Committee had scheduled a hearing related to the financial conditions at Fannie Mae and Freddie Mac, the
conservatorships and the GSEs’ roles in the ongoing financial crisis. The letter requested documents and
information concerning, among other things, risk and risk assessments, losses, subprime and other loans,
capital, and accounting issues. The Committee held its hearing on December 9, 2008.
Lease Commitments and Other Obligations
Certain premises and equipment are leased under agreements that expire at various dates through 2029, none
of which are capital leases. Some of these leases provide for payment by the lessee of property taxes,
insurance premiums, cost of maintenance and other costs. Rental expenses for operating leases were
$50 million, $55 million and $42 million for the years ended December 31, 2008, 2007 and 2006, respectively.
The following table displays the future minimum rental commitments as of December 31, 2008 for all non-
cancelable operating leases.
As of December 31,
2008
(Dollars in millions)
2009.............................................................. $ 40
2010.............................................................. 37
2011.............................................................. 37
2012.............................................................. 32
2013.............................................................. 20
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Total............................................................ $213
As of December 31, 2008, we had commitments for the purchase of various services and for debt financing
activities in the aggregate amount of $953 million.
22. Selected Quarterly Financial Information (Unaudited)
The consolidated statements of operations for the quarterly periods in 2008 and 2007 are unaudited and in the
opinion of management include all adjustments, consisting of normal recurring adjustments, necessary for a
fair presentation of our consolidated statements of operations. The operating results for the interim periods are
not necessarily indicative of the operating results to be expected for a full year or for other interim periods.
F-132
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)