Fannie Mae broke accounting rules; firm's capital position is now in jeopardy

[peterpr]

NY Times yesterday: Like all news this is no doubt largely factored in to present market prices. BUT - with the US housing bubble and refi / mortgage debt playing such a pivotal role in driving the US economy right now, it will add further to growing fears of a serious slowdown.

First para: "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."

Maybe not another Enron - but serious stuff non the less.

http://www.nytimes.com/2004/12/16/business/16fannie.html

 

[neil]

NY Times yesterday: Like all news this is no doubt largely factored in to present market prices. BUT - with the US housing bubble and refi / mortgage debt playing such a pivotal role in driving the US economy right now, it will add further to growing fears of a serious slowdown.

First para: "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
Maybe not another Enron - but serious stuff non the less.

http://www.nytimes.com/2004/12/16/business/16fannie.html

:!:
Didn't Warren buffet warn about the dangers of derivitives somewhere

 

[Mr. Charts]

peterpr,
Just a line to say thank you for pointing this one out - it gave me an 80c profit in 34 mins going long
Thanks
Richard

 

[RogerM]

and didn't fibs work a treat on this one as well! Classic.

 

[Mr. Charts]

;-)))
Yes, a bit of a no brainer !
Richard