Accounting

Fannie, Freddie Capital Concerns Prompt Paulson Plan (Update1) (Bloomberg.com)

7 Sep 2008

Sept. 7 (Bloomberg) -- Treasury Secretary Henry Paulson decided to take control of Fannie Mae and Freddie Mac after a review found the beleaguered mortgage-finance companies used accounting methods that inflated their capital, according to people with knowledge of the decision.

Why U.S. moved on mortgage giants (International Herald Tribune)

7 Sep 2008

Auditors for Treasury Department found that Freddie Mac's accounting methods overstated its capital cushion, officials say.

Accounting methods spur action (Albany Times Union)

7 Sep 2008

Advisers' concerns lead to expected takeover at Fannie Mae, Freddie Mac The government's planned takeover of Fannie Mae and Freddie Mac, expected to be announced as early as this weekend, came together hurriedly after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory ...