SEC announces new massive fraud investigation of Freddie Mac !!

This is a discussion on SEC announces new massive fraud investigation of Freddie Mac !! within the Stocks forums, part of the Markets category; the head of the SEC refuses to say exactly what sort of fraud they suspect, but i guess we'll find ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Oct 1, 2003, 1:32am   #1
 
Car Key Boi's Avatar
Joined Jun 2003
SEC announces new massive fraud investigation of Freddie Mac !!

the head of the SEC refuses to say exactly what sort of fraud they suspect, but i guess we'll find out soon!

oh yeah, if any of yuo Brits own any real estate in the US, Freddie and Fannie are the two companies that buy nearly every home mortgage in the country. Without these two scam companies, the housing bubble would have never happened. If I were yuo, i'd sell while yuo still can - that's what i did, Ra! Click the image to open in full size.

http://biz.yahoo.com/rb/030930/finan...ac_investig...

Reuters
SEC Investigating Freddie Mac for Fraud
Tuesday September 30, 3:28 pm ET
By Susan Cornwell

WASHINGTON (Reuters) - Securities and Exchange Commission (News - Websites) Chairman William Donaldson said on Tuesday that the commission is examining possible evidence of fraud at Freddie Mac (NYSE:FRE - News), the mortgage finance company already reeling from a recent accounting scandal.

The SEC had announced back in June that it was looking into whether Freddie Mac has violated securities laws. Donaldson spoke briefly about the ongoing investigation after he was asked about it by Republican Sen. Chuck Hagel of Nebraska during a Senate Banking Committee hearing.

He noted that Freddie Mac's regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), was conducting its own investigation of accounting irregularities at Freddie Mac, and said the SEC did not have anything to do with OFHEO's investigation.

But the SEC's job was to look for fraud in the marketplace, Donaldson continued.

"What we do control, even though they (Freddie Mac) are not registered with us now, is evidences of fraud, and if there is evidence of fraud, even though they're not registered, the impact on the marketplace, we would have a role there."

"We are looking at that right now," he added. "We're in touch with them and we're in touch with any evidences of fraud that might be, or might not be."

Donaldson gave no more details on the matter.

Freddie Mac rattled markets when it replaced its top three executives in June over an accounting scandal. Six months earlier, it had announced it would restate up to three years of results to reflect higher earnings.

A Freddie Mac spokeswoman said it was not surprising that an SEC probe should include an examination of possible fraud.

"We have been meeting with them (the SEC), since actually the beginning of our restatement process, and sharing any information that they requested," said the Freddie Mac spokeswoman, Sharon McHale.

"It is no surprise that in any corporation, in the case of any major restatement, that the SEC would look into the issue of fraud, and like any other company we are subject to all the anti-fraud provisions of securities laws," she said. "We will continue to cooperate fully with the SEC as they continue their investigation."

Donaldson also said Freddie Mac has agreed to voluntary registration with the SEC. The SEC is helping the company conform with SEC registration rules, Donaldson said.

Freddie Mac has acknowledged underreporting earnings by as much as or more than $4.5 billion over three years because of accounting irregularities. An independent report commissioned by the company said executives ignored accounting rules to push earnings into the future and maintain the image of steady earnings growth.
__________________
Retired...living in the West Indies

Having spent most of my working life staring at a bank of monitors, I now spend that time looking out for bandits to shoot who are after my madd loot. Much more fun and relaxing
Car Key Boi is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
why the massive differences in spreads. kaza Spread Betting & CFDs 8 Feb 11, 2004 10:28pm
DOW: Set up for a big sell-off (massive profit taking)? grubs50 Indices 53 Aug 26, 2003 4:50pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)