Corporate governance failures at Fannie Mae and Freddy Mac included all of the following EXCEPT
A) a lack of understanding regarding the risks of subprime loan strategies.
B) a strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management's proposed strategic actions.
C) inadequate monitoring of the CEO and other senior executives.
D) fraudulent executive compensation systems.
E) ineffective oversight of the accounting principles employed to accurately determine earnings.

Question

Quizplus · Accepted Answer

The statement "a strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management's proposed strategic actions" is not true as the board was not fully independent and had close ties to the management of Fannie Mae and Freddie Mac.

Corporate Governance Failures at Fannie Mae and Freddy Mac Included