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IN BRIEF / EARNINGS

Fannie Mae Discloses $1.2-Billion Error

October 30, 2003|From Reuters

Fannie Mae revised its third-quarter earnings release after finding what it called "computational errors" related to a derivatives accounting rule, in a move that the company's regulator said amounted to a $1.2-billion mistake.

Shares of Fannie Mae, the largest U.S. mortgage funder, fell sharply on news that it was revising the release. They gave back some of the losses after the company disclosed that the revisions would affect only balance sheet items and not influence its income statement.

Fannie Mae's regulator, the Office of Federal Housing Enterprise Oversight, said it was evaluating what led to the error.

Fannie Mae's shares fell $2.25 to $73.10 on the New York Stock Exchange.

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