Fannie Mae restatement to top?6bn
Mortgage giant finds more problems
US mortgage company Fannie Mae has found additional errors related to
investment securities, loans and mortgage-backed securities trusts, just weeks
after releasing a report which was meant to disclose all problems at the
The new errors mean the company is likely to make an $11bn (?6.3bn) profit
restatement, according to reports.
Company president and chief executive Daniel Mudd said the mistakes could
affect the expected restatement of earnings from January 2001 through the second
quarter of 2004.
Fannie Mae has already reported that it will not be able to file its 2005
financial report on time, with its 2004 results only expected in the second half
of this year.
The company is the second government-chartered mortgage institution to
announce delays to the filing of its financial statements, after Freddie Mac
announced it would delay filing its 2005 financials until May this year.