Industry News

Freddie Mac’s CFO to resign

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Martin Baumann, the chief financial officer of Freddie Mac since 2003, has resigned from the mortgage finance giant, the company said this morning. Baumann had planned to stay with Freddie for only two years when he joined in 2003, but he agreed to stay another year, a company spokeswoman said, according to reports. Baumann's resignation won't affect the company's timetable to state fourth-quarter and full-year results for 2005 in May, the company said. The company's earnings haven't been current since 2003, when an accounting scandal resulted in a $5 billion earnings restatement. Both Fannie Mae and its fellow government-sponsored enterprise, Freddie Mac, have been rocked by accounting scandals. In December 2004, Fannie Mae replaced Franklin Raines, its chairman and CEO, who announced he was taking early retirement, and Fannie Mae's chief financial officer, Timothy Howard, resigned Dec. 21. In early February of this year, the Bush administration said Congress should create a new regu...