In the midst of a massive restatement, troubled mortgage-finance concern Fannie Mae said it won't file its first-quarter financial report with the Securities and Exchange Commission on time.
In a filing this week with the SEC, Fannie Mae said it is "unable to provide a reasonable estimate of either its first-quarter 2005 results of operations or its restated first-quarter 2004 results of operations."
The company is under investigation by the SEC and the U.S. Attorney's Office for the District of Columbia because of a bevy of accounting issues that have led to an overhaul of its operations and governance, the ouster of some of its top executives, and a change of auditors.
The company plans to restate its financials for the period from January 2001 through the second quarter of 2004. Fannie Mae said costs related to the restatement drove administrative expenses in the first quarter to $440 million, up from about $383 million a year earlier. It recorded $1.5 billion in administrative expenses for all of 2004.
In the filing, Fannie Mae reiterated that it might need to reduce earnings by $8.4 billion from 2001 to mid-2004 to correct its accounting for hedges.
Fannie Mae hasn't yet filed its quarterly report for the period ended Sept. 30, 2004, or its annual report for the year ended Dec. 31, 2004.
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