Microsoft issues warning over security flaw

A newly disclosed flaw in Microsoft Word could let hackers take control of victims' computers by sending them e-mail with a Word document attached.

Microsoft informed computer users of the problem Tuesday, though the company classified it as a security "advisory." That makes it a less urgent warning than other security disclosures, though the company is investigating attacks that exploited the vulnerability.

As of Wednesday evening, the company had not released a patch to fix the problem.

The vulnerability affects versions of Microsoft Word sold from 2000 through 2006. Microsoft Word 2007, currently available only to businesses, is not vulnerable, the company said.

To fall prey, a computer user would have to open a Word document attached to an e-mail. Microsoft advised people not to open or save attachments from unknown correspondents and to reject unsolicited attachments even from friends and colleagues.

Nation and World

Fannie Mae

Profit restatement is $6.3 billion lower

Fannie Mae erased $6.3 billion in profit in a long-awaited restatement Wednesday, capping the accounting scandal that stunned financial markets and brought the ouster of top executives and a record fine against the government-sponsored mortgage leader.

The correction of its earnings from 2001 through June 30, 2004, ordered by the Securities and Exchange Commission (SEC) two years ago, was well below Fannie Mae's earlier estimate of $10.8 billion. The reworking of its accounting is costing the company some $1 billion this year to conduct.

It was the first earnings statement filed by Fannie Mae since late 2004, when the SEC ordered Fannie Mae to restate earnings back to 2001 because it violated accounting rules for derivatives and some prepaid loans. That forced the resignation of Chairman and Chief Executive Officer Franklin Raines, a Seattle native and Franklin High School graduate, and Chief Financial Officer Timothy Howard.

Home Depot

Stock-option error totals $200 million

The Home Depot said Wednesday an internal investigation of the company's stock-option practices has concluded errors caused it to have roughly $200 million in unrecorded option expenses over 26 years.

Despite the errors, the review, conducted with the help of outside counsel, determined there was no intentional wrongdoing by any current member of the company's management team or its board of directors.

Home Depot, the nation's largest home-improvement-store chain, did not make an assertion about the integrity of actions of prior management.

Home Depot shares were up 55 cents to $39.92 Wednesday.

Compiled from The Associated Press