Freddie Mac: How We Hid $5 Billion

[Socialist Christian]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=2&u=/nm/20031121/bs_nm/financial_freddiemac_dc



<snip>
WASHINGTON (Reuters) - Freddie Mac (NYSE:FRE - news) on Friday revealed, for the first time, the details of its earnings manipulations in recent years, including billions of dollars of overstatements and understatements.






The long-awaited numbers from the accounting scandal included an admission that the No. 2 mortgage finance company overstated earnings by almost $1 billion in 2001 and understated profit for 2002, 2000 and earlier periods by more than $6 billion.


Freddie Mac shares rose as much as 4 percent initially but ended the day virtually unchanged as investors looked for closure to the scandal, in which financial results were massaged to show the sort of steady growth Wall Street favors.


All three major rating agencies reaffirmed their "AAA" ratings on Freddie Mac senior debt. However, the company said quarterly and full-year results for 2003 would be delayed until next June.

[sandnsea]

1. What does this mean?

In terms of interest rates, loan availability and the housing market in general.

[junker]

2. Pop! Ssssssssssssss.......

housing market has popped. Refi's down 89% already since peak in summer.

see http://www.halfpasthuman.com/HPHFH_FSBO.htm