Fannie Mae Delays Report

Fannie Mae(FNM Quote - Cramer on FNM - Stock Picks) will miss another deadline for filing its quarterly financial statement.

The government-sponsored mortgage firm, in a filing Wednesday, says it won't be able to file its second-quarter financial report on time. Fannie Mae has had trouble filing its financial statements in a timely fashion ever since it got caught up in a massive accounting scandal.

In May, Fannie paid a $400 million fine to regulators to settle allegations of accounting manipulation, arising from a three-year investigation into the firm.

The main allegations at Fannie have been long known to investors. From 1998 to 2004, the company overstated its earnings by $10.6 billion. Most of the accounting shenanigans at Fannie revolved around the use of improper accounting treatment for derivatives, sophisticated financial instruments the firm used to hedge its gargantuan mortgage portfolio against interest rate fluctuations.

The scandal at Fannie led to a management shake-up, including the resignation of Franklin Raines, a former director of the federal Office of Management and Budget in the Clinton administration. The company is still bracing for a massive earnings restatement, which has already cost shareholders hundreds of millions of dollars in fees paid to professional advisers.