After a two-month delay, Freddie Mac revealed its 2005 financial results last week. Originally expected to come out in March but postponed as a result of the company's implementation of a new method of valuing certain assets, the recent report estimated the GSE's 2005 income at $2.1 billion, down from $2.9 the previous year.

The report stated that the drop in net income reflects the $600 million of costs related to three main events: the settling of the securities class action and shareholder derivative litigation, the charges involving Hurricane Katrina and lastly, the net impact of certain accounting changes.

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