Blaming a computer for accounting errors, mortgage financier Freddie Mac announced that it has cut about $220 million in profits from its statements for the first half of 2005.
Freddie said that it earned $1.4 billion in the first six months of 2005, not the $1.6 billion it reported on Aug. 31. In a statement, the company said the difference "reflects the correction of interest accruals recorded for certain mortgage-related securities stemming from miscalculations since 2001 in a legacy computer system." The company also pointed out that the amended profit represents less than 1 percent of its core capital as of June 30.
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