Fannie Mae ready for restatement

US government-backed mortgage company Fannie May says it will restate its
2004 earnings by the end of the year.

The company claimed a massive review of its accounting has uncovered all of
the errors, adding that multibillion-dollar correction could be less than
estimated previously.

Fannie May finances one out of every five home loans in the United States.

It had been accused by federal regulators of serious accounting problems and
earnings manipulation to meet Wall Street targets, with the Securities and
Exchange Commission ordered the company to restate earnings back to 2001.

Related reading