Skip to comments.Fannie Mae delays second-quarter earnings filing
Posted on 08/09/2005 2:49:24 PM PDT by AdamSelene235
WASHINGTON, Aug 9 (Reuters) - Mortgage finance giant Fannie Mae (FNM.N: Quote, Profile, Research) , whose accounting problems are expected to result in a multibillion-dollar profit restatement, on Tuesday said it would not file its second-quarter earnings on time.
Fannie, a shareholder-owned but government-sponsored housing enterprise, also said it was unlikely to post 2004 results before the second half of 2006.
Fannie Mae last filed a quarterly financial report in June 2004. The company expects to restate results for 2001 through 2004 and has said it will not likely release any financial results before the restatement process is completed.
"Completing this restatement is Fannie Mae's number-one corporate priority, and we are moving forward," said Chief Executive Officer Daniel Mudd.
"While we do not believe the restatement will be completed until sometime during the second half of 2006, our goal is to get our restatement right and to complete it as efficiently and expeditiously as possible," he said in a prepared statement.
The company offered limited insight into its business during the second quarter and first half of 2005. It said, for example, that its annualized portfolio holdings had declined by 23.7 percent in the second quarter and 20.2 percent in the first half of the year, as liquidations and portfolio sales exceeded purchases.
Fannie also said administrative expenses were climbing, due in large part to costs related to the restatement. In 2005, restatement-related costs, including litigation defense, should total more than $420 million, the company said.
Any other company would have been delisted and had its executives jailed by now.
Pretty big assumption that the books were accurate before then just because they aren't trying to correct them. It may just be that the statute of limitations has run.