As usual when you try to hide something on investors, they tend to get annoyed and more distrustful. The result? A falling stock price.
Fannie Mae's credit losses still in doubt - Nov. 16, 2007:
"In announcing quarterly results Nov. 9, Fannie Mae (Charts) used a different methodology for calculating its credit-loss ratio -- one that had the effect of making the ratio appear more reassuring to investors than it is. In response to investor concerns about the change, first reported this week on Fortune.com, Fannie Mae executives held a conference call with analysts Friday morning that did little to placate investors. Fannie Mae shares fell $2.32, or 5.39%, Friday. The company's stock price has plunged 17% since Fortune revealed the change in disclosure in a story posted online Wednesday"