Freddie Mac’s Board Also Is Blamed

Freddie Mac’s board of directors is partly to blame for accounting mistakes that last year prompted a $5-billion restatement of earnings, said Armando Falcon, director of the Office of Federal Housing Enterprise Oversight that supervises the company.

Freddie Mac, the second-largest source of U.S. home mortgage financing, last month agreed to pay a $125-million fine after the housing agency’s investigation determined the company manipulated earnings from 2000 until 2002.

From Bloomberg News