According to an article on the Wall Street Journal, Freddie Mac’s chief executive plans to step down. Charles E. Haldeman, Jr. announced this week that sometime next year he will be leaving. Haldeman has only been with Freddie Mac for a short two years and during that time numerous other executives have also moved on.
It is no secret that Freddie Mac has been operating on shaky ground. The company along with its counterpart Fannie Mae were taken over by the federal government back in 2008 and since then have cost tax payers millions of dollars. The government had to step in and bail out both companies so that they could stay afloat. Almost half of all US mortgage are guaranteed by either Freddie or Fannie. Since the take over both companies have been scrutinized and it is still unclear what the future holds for either company.
While everyone knows that something needs to be done about Fannie and Freddie, no one seems to be able to come up with an agreeable solution. According to the Wall Street Journal article, both Freddie and Fannie have been under attack about key financial decisions that have been made. Both past and current employees have said that the working environment at the companies is tense and second guessing of decisions made is fairly common.
Along with Haldeman leaving, two board members have also announced their upcoming departures. Chairman of the board John Koskinen has reached mandatory retirement age and must step down. Additionally, Robert Glauber also plans to leave the board. With all the turmoil taking place on the board and in company management there could be more troubles ahead for Freddie.
Haldeman has agreed to stay on until a new CEO can be named. Acting director of the FHFA Edward Demarco commented on Haldeman’s departure by stating the following:
Ed Haldeman has brought strong leadership to Freddie Mac. I appreciate his commitment to leadership stability during the upcoming transition.
Haldeman said that he hopes by announcing his retirement from the company now that there will be plenty of time for a smooth transition.