Industry News

Freddie Mac ex-CEO may get paid

Judge rules against oversight agency's freeze on money owed

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A federal judge this week ruled that the federal agency that oversees Freddie Mac cannot freeze almost $55 million in pay owed to the company's former CEO, according to news reports. The Office of Federal Housing Enterprise Oversight last year ordered Freddie Mac to withhold pay benefits to Leland Brendsel and other executives after accounting problems at the mortgage giant came to light last year. But U.S. District Judge Richard Leon ruled late Monday that OFHEO had exceeded its authority in ordering Freddie Mac to withhold that compensation while it seeks civil penalties and restitution. "OFHEO's arguments that it has the power to freeze assets pending the outcome of the administrative proceeding in this case is simply overreaching," Leon wrote. Brendsel resigned in June 2003 at the request of Freddie Mac's board. His resignation was considered to be for "good reason," which meant he was owed the entire termination package outlined in his employment contract. But OFHEO tried to ret...