SEC Probing Freddie Mac for Fraud

Discussion in 'Trading' started by trader556, Sep 30, 2003.

  1. Reuters
    SEC Probing Freddie Mac for Fraud
    Tuesday September 30, 11:55 am ET


    WASHINGTON (Reuters) - Securities and Exchange Commission (News - Websites) Chairman William Donaldson said on Tuesday the commission is examining possible evidence of fraud at mortgage finance company Freddie Mac (NYSE:FRE - News).

    Donaldson told the Senate Banking Committee the SEC is not Freddie Mac's regulator but it is the commission's job to investigate fraud.

    "If there is evidence of fraud ... we would have a role there," he said in response to lawmakers' questions.

    "We are looking at that right now," he added.

    Freddie Mac rattled markets when it replaced its top three executives in June over an accounting scandal.

    Pressed for details about the investigation by Nebraska Republican Sen. Chuck Hagel, Donaldson declined to comment further.

    The SEC chairman also said Freddie Mac has agreed to voluntary registration with the SEC. The SEC is helping the company conform with SEC registration rules on securities, Donaldson said.

    Freddie Mac has acknowledged underreporting earnings by about $4.5 billion or more over three years because of accounting tricks. Freddie Mac has said it issue a report on its restated earnings in November. An independent report commissioned by the company said executives ignored accounting rules to push earnings into the future and maintain the image of steady earnings growth.


    http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=3533281
     
  2. gimp570

    gimp570

    So are they good shorts from here?
     
  3. considering that news is old as in hours and FNM is up ....what do u think????