As expected, KPMG flung some mud of its own back at home mortgage giant Fannie Mae last week, accusing the government-subsidized company of breach of contract and fraudulent misrepresentation -- claiming that the problems leading to Fannie Mae’s $6.3 billion restatement were largely of the mortgage lender’s own making.
“Fannie Mae repeatedly and intentionally violated” its contractual obligations toward KPMG “by failing to disclose information to KPMG that was vital to KPMG's ability to perform audits and quarterly reviews and by misrepresenting material information,” Bloomberg News reported the accounting firm claiming in its federal district court filing. “Fannie Mae repeatedly, systematically and intentionally misled KPMG.”
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