Freddie Mac: Behind The Bloodbath

What does it mean when a company under criminal investigation sweeps out three top executives but only one is fired? That happened last week at Freddie Mac, the giant government-chartered mortgage company whose board grew impatient with management's internal probe of accounting irregularities that surfaced in January. Freddie Mac's president, David Glenn, was terminated, but the former chief financial officer, Vaughn Clarke, merely resigned and the former CEO, Leland Brendsel, retired at 61. The varying nature of their departures has grabbed the attention of Republican Congressman Richard Baker, who chairs a House financial-services subcommittee. Sources tell TIME that Baker has demanded...

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