It was just last month that Board of Directors chairman Shaun F. O'Malley came out in favor of Parseghian following the announcement that independent lawyers--investigating alleged accounting transgressions that caused three years of earnings statements to be off by anywhere from $1.5 billion to $4.5 billion--had concluded that the deposed leadership team had deliberately violated legal accounting procedures. "I want to say again that we have the right CEO in Greg Parseghian leading our business," O'Malley explains in the prepared statement from July. "Greg is a person of considerable talent, deep expertise and unquestioned integrity and he is uniquely positioned to lead our drive toward the highest standards of financial reporting and disclosure."

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