Industry News

Freddie Mac CEO to confront Congress

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Freddie Mac's financial chief and the director of the federal regulatory agency charged with oversight of the corporation are scheduled to testify at a Congressional hearing this week. Martin F. Baumann, CFO of Freddie Mac, and Armando Falcon Jr., director of the Office of Federal Housing Enterprise Oversight, appear on an updated list of witnesses who will testify tomorrow before a subcommittee of the House Committee on Financial Services chaired by Rep. Michael Oxley (R-Ohio). The topic of the hearing will be OFHEO's report last month on its special examination of Freddie Mac and its finances. The report said the regulator had discovered "a pattern of inappropriate conduct and improper management of earnings that led to (Freddie Mac's) recent restatement" of its financial results. "A government sponsored enterprise like Freddie Mac lives on a public trust that should never be violated. OFHEO will take strong action against an enterprise and responsible individuals if that trust ...