Thursday, September 30, 2004

Serious problems found at Fannie Mae

The developments surprised financial experts and Wall Street. A little more than a year ago, Freddie Mac Fannie Mae's sister agency and competitor in the multitrillion-dollar home mortgage market disclosed that it had understated profits by some $4.5 billion for 2000-2002 in an effort to smooth earnings. Fannie Mae's accounting then came under close government scrutiny, though its leaders insisted that it had no problems of that type.

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