Freddie Promises to Release Probe Findings

Freddie Mac is promising to release the "principal findings" of an internal investigation into the company's accounting mess later this summer, which could shed more light on the firing of its former president David Glenn.Freddie Mac's board of directors hired an outside counsel, James Doty, to conduct an inquiry into the accounting decisions that resulted in an underreporting of the secondary mortgage giant's earnings. Mr. Doty is a partner at Baker Botts in Washington. The board allegedly fired Mr. Glenn for not cooperating with Mr. Doty's inquiry. The board's counsel also is expected to address the issue of whether Freddie Mac officials deliberately adopted certain accounting interpretations involving derivatives and investment classifications to smooth out earnings over time. Mr. Doty plans to present an interim report to the board of directors in July and a final report before the end of September. "Freddie Mac expects to make public Board Counsel's principal findings following those presentations," the company said.