Freddie Mac says U.S. investigation dropped

by Mike Bevel, CollectionIndustry.com

Taking a “no news is good news” approach, Freddie Mac released the following statement:

“The U.S. Attorney's office has not initiated contact with us in well over two years and it is our understanding that the matter is inactive.”

Freddie Mac has been under scrutiny for understating earnings in 2000, 2001 and 2002 by $5 billion. The scandal led to the ouster of former CEO Leland Brendsel, former company president David Glenn and chief financial officer Vaughn Clarke. The company has paid fines including a $125 million penalty to federal regulators to settle the accounting matter.

Freddie Mac is still trying to get back to regular financial reporting. Last Friday, CEO Richard Syron said the company is aiming to get its books current by 2007, after it announces its full-year 2006 results.

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