Freddie Mac to Block Execs’ Stock Options

Under pressure from federal regulators, mortgage giant Freddie Mac said it would block any attempts by two ousted top executives to sell their departure-package stock options while their pay deals are under government review.

The company’s ousted chief executive, meanwhile, disputed a federal agency’s assertion of its authority to approve or reject his $24-million compensation package. An attorney for former CEO Leland Brendsel told Freddie Mac in a letter that the regulatory agency was “utterly without legal authority” to stop Brendsel from receiving the benefits.

The Office of Federal Housing Enterprise Oversight said it disagreed.

Freddie Mac stunned financial markets a week ago when it disclosed that it had fired its president, David Glenn, for what it called his failure to fully cooperate in an internal accounting review.

Freddie Mac shares rose $1.53 to $52 on the New York Stock Exchange.