Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Wednesday, March 22, 2006

Sayonara Freddie Mac


"Martin Baumann, the respected chief financial officer of Freddie Mac (NYSE:FRE - news), has resigned less than three years after taking the job at the second-largest U.S. mortgage funding company, which is still recovering from an accounting scandal"

""I've dealt with my job, set up a blueprint, and gotten Freddie Mac back to regular quarterly reporting," said Baumann in an interview. "Now it's up to other people to carry it out."
Baumann resigned March 21, but will remain until the end of May as an executive vice president and special adviser. He said he would also act as a consultant to Freddie Mac in the future. He said he had no plans for where he would go next."

Something tells me this is not a good thing. Apparently this was not planned, (at least by Freddie) and no successor was on deck. I wonder if something that doesn't pass the smell test will be coming next as we hear about the true state of their financials?

"The earnings of Freddie Mac have not been current since a 2003 accounting scandal resulting in a $5 billion earnings restatement and management overhaul."

"The timing of the departure is unusual, as is the fact that no successor is named and the search is just getting under way," said Ed Groshans, an analyst with Fox-Pitt, Kelton."

"On March 10 Freddie Mac said it would delay until May the release of its quarterly and full-year financial results in order to implement an accounting change. It said it would hold a conference call with investors on March 30 to discuss this."

1 Comments:

At 3/22/2006 03:26:00 PM , Blogger Marinite said...

It sure smells like meltdown time over on the FredieMacAndCheese.

 

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