U.S. Attorney's Office Investigating Accounting, Disclosure at Fannie and Freddie

Freddie Mac and Fannie Mae continue to be a source of scrutiny after it was announced that the Government Sponsored Enterprises have been subpoenaed by New York Attorney's Office.

Meanwhile, the Securities and Exchange Commission gave notice that it will be conducting an investigation into accounting and disclosure practices at the mortgage finance companies.

On Friday, Freddie Mac received a notice from the Enforcement Division of the United States Securities and Exchange Commission directing the company to preserve documents.

The subpoena seeks documents related to "accounting, disclosure and corporate governance" for the period of Jan. 1, 2007 to the present.

Freddie Mac has indicated that it will co-operate fully with the investigation.

By Steve Stecyk and edited by Stephen Huebl
©CEP News Ltd. 2008