Freddie Mac faces SEC, state probes

From Amy Sahba
CNN
(CNN) - Mortgage finance giant Freddie Mac has been immersed in financial problems since last year, when the government took it over in the midst of the escalating subprime-mortgage loan crisis.

According to a March 11 company filing, Freddie Mac was being investigated by U.S. Attorney's Offices in New York and Virginia. It subsequently was notified that the Securities and Exchange Commission was also launching an inquiry - which has since evolved into a "formal investigation."

The company was subpoenaed for documents relating to accounting, disclosure and corporate governance matters in September 2008, October 2008, January 2009 and February 2009. The filing also says that SEC staff was interviewing company employees.