Corporate governance failures at Fannie Mae and Freddy Mac included all of the f
ID: 389939 • Letter: C
Question
Corporate governance failures at Fannie Mae and Freddy Mac included all of the following EXCEPT
Multiple Choice
a lack of understanding regarding the risks of subprime loan strategies.
a strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management's proposed strategic actions.
inadequate monitoring of the CEO and other senior executives.
fraudulent executive compensation systems.
ineffective oversight of the accounting principles employed to accurately determine earnings.
Explanation / Answer
Ans : a strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management's proposed strategic actions
The above statement is not a corporate governance failure.
The remaining options were all corporate governance failures at Fannie Mae and Freddy Mac