Troubled mortgage-financing company Fannie Mae said its previously announced financials restatement will probably be completed by the second half of 2006, according to a federal filing.
The Securities and Exchange Commission ordered the restatement last year after it discovered problems with the company's accounting practices from 2001-2004 relating to deferred purchase price adjustments, as well as for derivatives and hedging activities.
Last year, Fannie Mae's overseer, the Office of Federal Housing Enterprise Oversight, also uncovered significant including juggling the books to meet targets that triggered executive bonuses. Those revelations led to the December resignations of chairman and chief executive Franklin Raines and chief financial officer Timothy Howard.
Recently, Fannie Mae added nine officers to its finance division as part of a top-down overhaul. The company added that it plans to hire 1,500 consultants by the end of the year to help complete the restatement. Fannie Mae previously said that it might have to restate up to $10.8 billion in earnings.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access