Freddie Mac: 2004 Profit Down, 2005 Down More
Reuters is covering the news that Freddie Mac, the second largest home mortgage firm in the US, has reported a much lower net income for 2004. "Freddie Mac..(which) is pushing to emerge from a scandal-marked era, on Thursday posted a more than 40 percent drop in 2004 net income as the value of contracts used to hedge against interest rate changes fell."
Yet again, accounting for derivatives is to blame. Sure. But MarketWatch slipped in another bit of bad news. "For 2005, Freddie said it expects to report net interest income "materially lower" than in 2004."