Mortgage Giant Overstated the Size of Its Capital Base
The government's planned takeover of Fannie Mae and Freddie Mac, expected to be announced on Sunday, came together after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter.
The proposal to place both companies, which own or back $5.3 trillion in mortgages, into a government-run conservatorship ...
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