NEW YORK, July 11 (UPI) -- The financial regulator for Freddie Mac is reportedly checking into the government-sponsored mortgage company's new chief executive.
People close to the situation say the inquiry is into whether CEO Greg Parseghian played a role in the company's recent accounting problems, the Wall Street Journal reported.
The development involving Parseghian has significance because investors had been heartened by his selection to run the company. Freddie Mac shares tumbled 16 percent after the mortgagor ousted its three top leaders June 9 but have rallied nearly 7 percent since.
The regulator, the Office of Federal Housing Enterprise Oversight, is "reviewing everyone's role in the issues under investigation," including current employees, a person familiar with the investigation said.
The board's internal investigation, meanwhile, is expected to show some company officials designed and conducted large numbers of sophisticated financial transactions with the purpose of shifting hundreds of millions of dollars in earnings into future years, the Journal said.
