Freddie Mac Says Profit Fell in 2005

Mortgage finance company Freddie Mac, which is trying to recover from $5 billion in accounting errors, said profit fell about 14% last year as it met a higher capital reserve level set by federal regulators.

The government-chartered company said preliminary net income was about $2.5 billion, down from $2.9 billion in 2004. Core capital rose to $36.3 billion from $35 billion the previous year.