The New York Times
Freddie Mac In Broad Shake-Up

By Alex Berenson

Freddie Mac, the big buyer of mortgage loans, fired its president yesterday, contending that he failed to cooperate with an internal investigation into its accounting practices.

In addition to the dismissal of the president, David Glenn, the company's two other most senior officials also stepped down abruptly. Leland C. Brendsel, Freddie Mac's chairman and chief executive, retired, and Vaughn A. Clarke, its chief financial officer, resigned.

But the sweeping reshuffling yesterday has seriously damaged the company's credibility, said J. Edward Ketz, associate professor of accounting at Pennsylvania State University. In the accounting scandals of the last few years, "any time someone's been ousted, it's always been a problem sign," Mr. Ketz said.

To return to Media Coverage click here .

REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu .

Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the eBusiness Research Center, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.

Click here for more news.