It was just last month that Board of Directors chairman Shaun F.O'Malley came out in favor of Parseghian following the announcementthat independent lawyers--investigating alleged accountingtransgressions that caused three years of earnings statements to beoff by anywhere from $1.5 billion to $4.5 billion--had concludedthat the deposed leadership team had deliberately violated legalaccounting procedures. "I want to say again that we have the rightCEO in Greg Parseghian leading our business," O'Malley explains inthe prepared statement from July. "Greg is a person of considerabletalent, deep expertise and unquestioned integrity and he isuniquely positioned to lead our drive toward the highest standardsof financial reporting and disclosure."

But that previously expressed position could be in for a change.Today, Freddie Mac issued the following statement in response tothe new hoopla surrounding Parseghian: "We have been meeting withOFHEO Director [Armando] Falcon to learn his views, includingconcerns about members of current management as well as managementstructure. The Corporation is discussing ways to accommodate hisconcerns as well as the needs of Freddie Mac and its constituents.Beyond that, speculation as to the nature or timing of resolvingOFHEO's concerns is absolutely premature, as discussions areongoing."

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