S.E.C. Says Fannie Mae Violated Accounting Rules.
The S.E.C. has ordered Fannie Mae to restate its earnings for the last four years after concluding that it had violated accounting rules.
The staff of the Securities and Exchange Commission has ordered Fannie Mae, the nation’s largest buyer of mortgages, to restate its earnings over the last four years after concluding that it had violated accounting rules on its treatment of derivatives and loans.
Fannie said last month that if it was found to be in violation of the rules, it might have to report after-tax losses on its derivatives transactions of as much as $9 billion.
And in more crime, er, corporate business news
Time Warner settles AOL fraud charges
As part of the settlement with the Justice Department, Time Warner agreed to cooperate with the criminal investigation. If Time Warner executives fail to do so, Deputy U.S. Atty. Gen. James Comey said, “the deal is off and they are in a world of trouble.”