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DOJ, SEC probing Freddie Mac

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Federal prosecutors and the Securities and Exchange Commission are both conducting investigations into whether Freddie Mac properly disclosed risks associated with mortgage-related investments. In its latest annual report to investors, Freddie Mac disclosed that it had received a federal grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York seeking documents related to accounting, disclosure and corporate governance matters dating back to Jan. 1, 2007. That investigation is now being conducted by the U.S. Attorney's Office for the Eastern District of Virginia, Freddie Mac said. On the same day Freddie Mac was subpoenaed by federal prosecutors -- Sept. 26 -- the company said it received notice from the SEC that the commission was conducting its own inquiry, and that Freddie Mac was not to destroy any documents that might shed light on the matter. The SEC has also been conducting interviews with Freddie Mac employees, and the company is &q...