Freddie Mac needs more time
The embattled US mortgage financier, Freddie Mac, says it has uncovered no new accounting errors since June this year, but needs more time to validate its results, before restating billions of dollars in earnings.
The company was due to restate its 2000 to 2002 earnings at the end of September, after accounting problems were uncovered in June 2003. A restatement is expected to run into billions of dollars, the FT reported.
Also in June the company’s former chief executive Leland Brendsel and its previous president and chief operating officer David Glenn were both fired because of their connections to the accounting inquiry.
Freddie Mac’s debt to bondholders exceeds $500bn and the problems with its accounts has rocked the US financial services market.