Freddie Mac: Managing in Conservatorship

Posted: 10 Apr 2012

See all articles by Robert S. Kaplan

Robert S. Kaplan

Harvard Business School

Nitin Nohria

Harvard Business School

Ben Creo

Harvard University - Business School (HBS)

Date Written: September 15, 2010

Abstract

Ed Haldeman has recently become Chief Executive Officer of Freddie Mac, one of three major government sponsored enterprises (GSEs) charged with supporting U.S. residential mortgage finance. The company was placed into conservatorship by the US treasury on September 7, 2008. Conservatorship places various restrictions on Haldeman and the organization in terms of management. Haldeman's challenge is to lead Freddie Mac, build its culture, upgrade its operations and generally prepare the organization for re-emerging from conservatorship. In the background, housing prices continue to deteriorate and the company continues to lose money. In addition, political views continue to shift regarding the future regulatory and equity ownership frameworks for Freddie Mac as it emerges from this difficult period.

Learning Objective: To analyze a complex set of contingencies facing a company in uncertain times.

Suggested Citation

Kaplan, Robert S. and Nohria, Nitin and Creo, Ben, Freddie Mac: Managing in Conservatorship (September 15, 2010). Harvard Business School Organizational Behavior Unit Case No. 411-048, Available at SSRN: https://ssrn.com/abstract=2037910

Robert S. Kaplan (Contact Author)

Harvard Business School ( email )

Soldiers Field
Accounting & Control
Boston, MA 02163
United States
617-495-6150 (Phone)
617-496-7363 (Fax)

Nitin Nohria

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-6653 (Phone)
617-496-7387 (Fax)

Ben Creo

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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