Fannie Mae and Franklin Raines, Fannie Mae’s former Chairman of the Board and CEO, were accused by its regulator of improper accounting practices and activities that threatened the safety and soundness of Fannie Mae. Daniel R. Fischel, supported by David Gross and a Compass Lexecon team in Chicago provided economic analysis demonstrating that the allegations Fannie Mae was accused of related to how Fannie Mae reports its financial results, rather than to the economic substance of Fannie Mae’s business or its safety and soundness. Raines reached a favorable settlement after expert reports were filed. We were retained by Gerson Zweifach, Joseph Terry and others at Williams & Connolly LLP in connection with their successful representation of Mr. Raines. In addition, Compass Lexecon expert Charles Cox was retained on behalf of J. Timothy Howard, Fannie Mae’s former CFO, by Steven Salky of Zuckerman Spaeder LLP who also reached a favorable settlement.