Fannie Case Demonstrates Difficulties of Financial Restatement; Delays and Rising Costs Sour Analysts
August 18, 2005
Last week’s announcement by Fannie Mae about how long its financial restatement process will drag on – and how much it will cost – offered a glimpse into the quicksand of internal controls gone awry and the damage it can cause to a firm’s image. Fannie officials announced last week that the government-sponsored enterprise will not be able to release an official financial report for 2004 until at least the second half of 2006. The