Fannie Mae finds new errors in review

Business Week reports on some real news last Monday:

As it continues to peel through the onion-like layers of its $11 billion faulty accounting, mortgage company Fannie Mae disclosed Monday that it has found additional errors in its government-ordered review.

The government-sponsored company, which finances one of every five home loans in the United States, said it had made "substantial progress" toward completing its accounting review but will miss a regulatory deadline Thursday for filing its annual financial report for the second straight year.

As we've said before,who else gets away with this? One prediction we made did come true:the original accounting problems would lead to other accounting problems.We predict even more.How much longer can the NYSE,SEC,Moody's,and Standard and Poor's take such a "gentle" approach with Fannie? Is it a good thing to be giving Fannie more time to get things in order?