Freddie Mac: Managing in Conservatorship
Posted: 10 Apr 2012
Date Written: September 15, 2010
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.
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