The Federal Home Loan Mortgage Corporation company achieved
better-than-expected results after tweaking its accounting practices.
One of the main differences involved adjustments to how the US company,
commonly known as Freddie Mac accounts for the financial instruments used to
hedge against swings in interest rates.
Under the revised measures, the company said it lost more than $1.3bn
(£0.67bn) on derivatives in the first quarter, compared with a loss of nearly
$2.3bn in the fourth quarter of 2007,
Press reported. Its net loss for the first quarter was $151m.
‘If you change the accounting rules, things can look better,’ said R
Christopher Whalen, managing director of consulting firm Institutional Risk
Freddie Mac is a US government-sponsored enterprise, which was created in
1970 to expand the secondary market for mortgages. It buys mortgages on the
secondary market, pools them, and sells them on as mortgage-backed securities to
investors on the open market.
Citigroup analyst Bradley Ball cited ‘improved accounting methodologies’ as a
reason for Freddie’s positive results.
Does Darwin's theory apply to taxation? Colin ponders...
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy