Freddie likely tripped on derivatives accounting

By Eric Burroughs

NEW YORK, June 19 (Reuters) - Freddie Mac's planned big accounting restatement likely means it will join its larger sister company Fannie Mae in reporting volatile derivatives on its income statement each quarter, something most investors have shrugged off in Fannie Mae's case.

The restatement, which received new attention last week after the company replaced its top management, stems from how Freddie Mac applied some tricky accounting rules on the ...