Freddie Mac executives resign

WASHINGTON, June 9 (UPI) -- Freddie Mac Chairman Leland Brendsel and other top executives of the nation's second-largest mortgage-financing agency resigned Monday.

Brendsel, Chief Financial Officer Vaughn Clarke and Chief Operating Officer David Glenn resigned apparently in response to a warning issued by the Office of the Federal Housing Enterprise Oversight, which was made public Monday. It was unclear what the warning was over.

The announcement sent Freddie Mac stock plummeting 14 percent and raised risk premiums on the mortgage giant's debt securities. It also sent the dollar lower against all major currencies.

Gregory Parseghian, Freddie's new president, tried to reassure investors in a rushed conference call, saying the firm's assets had not diminished. He also promised to resolve accounting issues as soon as possible.

The resignations came amid criticism Freddie Mac and companion agency, Fannie Mae, have grown too large.

U.S. Treasury securities benefited from the turmoil as investors sought safer havens.