Article: Freddie Mac Underreported By Up to $4.5B.

Freddie Mac said it underreported its after-tax earnings by as much as $4.5 billion over the past three years, but it still could not tell investors what its earnings were for 2002 or the first quarter of this year.

Freddie Mac chief executive Gregory Parseghian admitted the restatement process is an involved one and time consuming because of inadequate accounting systems and procedures, which the company is working aggressively to fix.

"The information we are disclosing today reflects poorly on Freddie Mac's past accounting, control and disclosure practices," Mr. Parseghian told investors and analysts on a conference call.

The conference call ...

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