Home mortgage giant Fannie Mae announced that it will reduce its earnings by $6.3 billion to correct accounting problems dating back to 2001.
In a filing with the Securities and Exchange Commission, the company said that the errors related to the way it accounted for complex derivatives -- resulting in a $7.9 billion loss after taxes that was about $2.9 billion less than previously estimated. But Fannie Mae said it misstated earnings by $6.3 billion when it worked through its statements from 2001 through the first two quarters of 2004, the last time it filed official results.
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