U.S. Assistant Treasury Secretary Emil Henry Thursday cited "new and troubling revelations that Freddie Mac's accounting and internal controls continue to be in disarray."
In a speech in which he first centered on Fannie Mae's recent $400 million settlement to resolve accounting and other problems, Henry said of Freddie Mac that "they have recently reported that they can 'begin' the registration process" with the Securities and Exchange Commission only after releasing full year 2006 results.Is it reasonable for Freddie Mac to begin this process over five years after announcing that they would register with the SEC?" the Treasury official asked.
Just as troubling, he said, is Freddie Mac's recent announcement that it needs to limit the number of internal controls initiatives and defer "lower priority" internal control efforts.
What a mess. :-(