On Friday morning Freddie Mac unveiled its long-awaited earnings restatement, saying it underreported profits by almost $5 billion for the 2000 to 2002 period (and earlier), while admitting it actually overstated 2001 earnings by $989 million.As result of accounting errors and mistakes, Freddie Mac did not properly recognize a $1.9 billion loss in the value of its derivatives in 2001, including a $1.1 billion hit in the first quarter alone. After correcting these errors, Freddie Mac retroactively suffered a $111 million earnings loss in the first quarter of 2001, which was originally reported as a profitable quarter with earnings of $832 million. The company is under investigation by the Justice Department, the Office of Federal Housing Enterprise Oversight, and the Securities and Exchange Commission in regard to allegations that officials there intentionally "smoothed out" earnings. Freddie Mac chief accountant Martin Baumann said during a Friday morning conference call that the restatement of earnings shows that earnings have been volatile and will continue to be volatile. In response to a question, the chief accountant said it is difficult to determine how much of the volatility is due to accounting mistakes versus changes in interest rates. "It is very hard to separate the two," he said. "They are really intertwined."
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18