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Does Freddie Mac have sufficient earnings to cover their dividend? Freddie Mac (FMCC) does not pay a dividend.
In December 2003 Freddie Mac, the federally chartered mortgage financing giant, agreed to pay a civil penalty of $125 million and implement measures to correct its accounting and governance problems as part of a consent order with a federal regulator.
As restated, Freddie Macs net income for 2002 was $10.09 billion, or $14.18 per diluted common share. The company reported regulatory core capital of $28.99 billion as of December 31, 2002, and stockholders equity at that date was $31.33 billion.
Freddie paid a then-record $125 million civil fine in 2003 in a settlement with the Office of Federal Housing Enterprise Oversight, which blamed management misconduct for the faulty accounting. In September 2004, an equally stunning accounting scandal came to light at No. 1 mortgage finance company Fannie Mae.
The most notorious accounting fraud case is the Lehman Brothers scandal. The global financial services firm hid over $50 billion in loans disguised as sales.

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The regulators said an accounting fraud at Fannie Mae included manipulations to docHub earnings targets so that Mr. Raines, Mr. Howard, Ms. Spencer and other company executives could pocket hundreds of millions in bonuses from 1998 to 2004.
Freddie Macs investors include, but are not limited to, central and commercial banks, pension funds, insurance companies and securities dealers from around the world.
An accounting scandal erupted at Freddie Mac in June 2003 when it disclosed that it had misstated earnings by some $5 billion mostly underreporting them for 2000-2002 to smooth quarterly volatility in earnings and meet Wall Street expectations.

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