Regulator Settles Action Against Freddie Mac

A U.S. regulator said it settled an action brought against Freddie Mac in 2003 related to a multibillion-dollar accounting scandal that required the mortgage finance giant to help in ongoing actions against former executives.

The Office of Federal Housing Enterprise Oversight said Freddie also agreed to seek recovery of funds from separated officers after administrative actions against the former chief executive and chief financial officers.

Under the consent order, which the enterprise oversight office said Freddie entered to resolve the case without incurring the additional cost and distraction of litigation, the company agreed to retroactively fire its former CEO, Leland Brendsel, and former CFO Vaughn Clarke.