Software, Digital Content, Geopolitics, Economics & More from of a Libertarian Serial Expat and Entrepreneur
In: software6 Nov 2003
Corp Law Blog: Painful Lessons: Fannie Mae’s Press Release From Hell
"[A]s it was preparing its third quarter Form 10-Q, Fannie’s accounting staff discovered that their FAS 149 calculations understated the value of Fannie’s mortgage loan commitments by $1.3 billion, resulting in a $1.1 billion understatement of Fannie’s net worth. Fannie attributed this to "human error," explaining in a statement that: "There were honest mistakes made in a spreadsheet used in the implementation of a new accounting standard." On October 29, Fannie’s investor relations department alerted BusinessWire that it would soon be issuing a corrected version of its October 16 earnings release."
Mike O’Sullivan points out that $1.1B is not much in the context of Fannie Mae’s $1+T assets. Still, this is a reminder that many spreadsheets being bounced around companies contain errors.
I'm CEO of an online trade publishing firm in the marketing and defense verticals. We try to make news and data digestible and useful in an environment that is more noisy each day. This personal blog mixes my thoughts and interests on politics, business, software, and more, based on my business and personal experiences. Over the years I have posted items that turned out spectacularly wrong, and a few posts that stood the test of times better. Personal views only.