Financial Accounting Blog

Thursday, December 04, 2003

The Cincinnati Enquirer reported in August that Ohio Attorney General Jim Petro sued mortgage buyer Freddie Mac to recover more than $25 million lost by two state retirement systems due to purposely underreporting profits.
Freddie Mac was so intent on maintaining its public image that its officers and board were willing to ignore the rules of proper accounting at the expense of investors," Petro said. "This shoddy accounting and lack of corporate ethics is shameful.