Freddie Mac CEO Sees No Criminal, Fraud Issues
Monday June 9, 10:38 am ET
by Rob Wells, Of DOW JONES NEWSWIRES
[some cracks in the GSE money laundering game???
FRE down 12%, FannyMae down almost 5%
just the beginning
these fat fraudulent effing pigs will be slaughtered eventually
the USGovt will do everything to prevent it
they wont succeed
over time, GSE capital foundation will be teeny tiny and insufficient]
WASHINGTON -(Dow Jones)- Freddie Mac's new CEO said Monday that the company doesn't believe fraud or criminal misconduct were behind accounting issues that resulted in change of the company's top management.
"We have not characterized anything that has occurred as fraud or criminal or any such legal designation," Gregory J. Parseghian, Freddie Mac's new chief executive officer and president, told investors and analysts on a conference call.
Freddie Mac said it has fired President and Chief Operating Office David Glenn because of "serious questions about the timeliness and completeness of his cooperation and candor with the board's audit committee counsel."
The firm also said Leland Brendsel retired as chairman and chief executive officer and that Vaughn Clarke retired as executive vice president and chief financial officer.
Freddie Mac's regulator, the Office of Federal Housing Enterprise Oversight, said Monday it's deploying a special team to investigate a re-audit of Freddie Mac that revealed deficiencies in accounting practices and controls.
Parseghian said Glenn was fired for failing to provide full and complete cooperation to a board investigation into the accounting and audit issues.
"Mr. Glenn does not meet the standard of that cooperation," Parseghian said.
Freddie Mac also elected Shaun F. O'Malley as a non-executive chairman of the company's board of directors. He offered a strong endorsement for the company's new management team, which also includes Paul Peterson as executive vice president and chief operating officer and Martin Baumann, executive vice president for finance and chief financial officer.
"The board felt very positively about these three, continues to and supports them completely," O'Malley said on the conference call.
-By Rob Wells, Dow Jones Newswires; 202-862-9272; Rob.Wells@dowjones.com |
