Freddie Mac Foundation Restructures Management

The Federal Home Loan Mortgage Corporation, or Freddie Mac, has restructured the management of its foundation, one of the leading charity givers in the Washington, D.C., area, and reprimanded its president, Maxine B. Baker, reports the Washington Post.

Baker remains president and CEO of the charity, but, under the restructuring that took place last month, no longer oversees day-to-day operations of the twenty-five-person staff at the charity, which focuses on helping children, especially with adoption. Instead, that task was given in November to senior vice president and chief operating officer David Robinson, who originally headed the foundation and came out of retirement to take the job. Freddie Mac created the foundation in 1991 after going public. The Freddie Mac Foundation and its parent company have contributed $165 million to community groups such as the Wednesday's Child adoption program, which seeks to place older children in permanent homes.

"I received and accepted a personnel action which identified certain flaws in my management style. I love the work of the foundation, and this has been an extremely difficult time for all concerned. I am determined to successfully implement the requisite changes to ensure the continued success of the Freddie Mac philanthropy program," said Baker in a prepared statement.

"As a matter of policy, we do not comment on personnel matters," said David Palombi, spokesman for the corporation and the foundation. He said Baker is "a valued and respected officer of the company," and that when the foundation's board met Dec. 4, it "reaffirmed" Baker's importance to the foundation.

The investigation of Baker is separate from Freddie Mac's long-running problems with its accounting, which led to a $5 billion correction in its financial statements and an agreement last week to pay $125 million to settle an Office of Federal Housing Enterprise Oversight probe of those issues.

Kathleen Day. "Freddie Tries to Fix Foundation." Washington Post 12/22/2003. "David Robinson Joins Freddie Mac Foundation as Senior Vice President and Chief Operating Officer." Freddie Mac Foundation Press Release 12/19/2003.