SEC cites Fannie Mae for breach of accounting rules

[JURIST] The chief accountant of the Securities and Exchange Commission revealed Wednesday that giant mortgage lender Fannie Mae, which finances the purchase of one out of every five homes in the US, violated accounting rules in respect of its handling of derivatives and some loan-related transactions between 2001 and 2004. Read the SEC release here. Fannie Mae has been under scrutiny by the SEC and other federal agencies for several months for various alleged irregularities. The SEC has directed the company to restate its earnings in light of the findings. Fannie Mae issued a press release Thursday in response to the SEC direction, saying it will "comply fully.". AP has more.



 

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