Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Freddie's New Head(ie)

Quasi-governmental mortgage company Freddie Mac (NYSE: FRE  ) last night named its third chief executive officer in a year. By the end of 2003, Richard Syron will take the reins from Greg Parseghian, who took over for the ousted Leland Brendsel.

Freddie's troubles since June have been well documented, with the company first saying it understated earnings and then recently disclosing that (whoops!) it actually overstated them in one year. The company's lack of quality leadership has been systemic, with the first CEO stepping down in response to the scandal, and the second (Parseghian) being asked by regulators to resign after his reported knowledge of Freddie's questionable accounting practices came out.

The insider nature of both of Freddie's former chiefs, then, is one reason that Syron's appointment is a positive development for the company and its shareholders. Syron's resume includes stints as the president of the Boston branch of the Federal Reserve and head of the American Stock Exchange. His most recent job was as the executive chairman of scientific equipment company Thermo Electron (NYSE: TMO  ) . He's an outsider to Freddie, but has extensive experience in operating big economic entities and dealing with regulators.

He is widely regarded as a strong leader, and is highly respected by his peers and former colleagues. Shareholders should be pleased with this announcement. Of course, there's no way to tell how successful Syron will be in his new position, and Freddie's future is still fraught with challenges, but this is a solid first step towards returning Freddie to respectability.

Do you think Freddie's new CEO will turn it around? Talk about it on the Fool's Freddie Mac discussion board.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 500429, ~/Articles/ArticleHandler.aspx, 10/22/2016 7:44:23 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 22 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 3:59 PM
FMCC $1.66 Down +0.00 +0.00%
Freddie Mac CAPS Rating: ***
TMO $150.66 Down -1.00 -0.66%
Thermo Fisher Scie… CAPS Rating: ****