Freddie Mac pays $50M SEC settlement over accounting fraud
CBS News
Transcript
[Music] Federal Mortgage giant Freddy Mack has agreed to pay $50 million as part of a long-awaited settlement with the Securities and Exchange Commission the SEC accused Freddy Mack of earnings mismanagement and accounting fraud saying it deceived investors by smoothing earnings to portray itself as steady Freddy the company settled without admitting guilt how are Americans coping with the mortgage mess and housing slump that will be the focus on on Wall Street today as investors pour over the latest reports on personal income and spending and consumer sentiment another dismal report on new home sales had investors betting on another interest rate cut by the Federal Reserve and that gave stocks a bit of a boost the Dow Rose nearly 35 points while the NASDAQ added 10 Honda and Toyota are winning the battle over fuel efficiency according to the Environmental Protection Agency the Asian automaker fleets average nearly 23 m per gallon General Motors came in sixth but LED domestic automakers with an average that top 19 m a gallon overall 2007 Vehicles got an average of 20 m per gallon the same as 2006 and mortgage rates Rose for the second straight week the average rate on a 30-year loan jumped to 6.42% that's up from 6.34% last week while the rate on a 15-year mortgage climbed to 6.09% that's your money watch log on to cbsnews.com for more business headlines in New York I'm Alexis christopherus