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Government News

Freddie Mac Settles With Federal Election Commission

April 19, 2006

   Related Information
Freddie Mac - FEC Agreement

McLean, VA – Freddie Mac (NYSE: FRE) has entered into a conciliation agreement with the Federal Election Commission (FEC), ending the FEC's investigation of political fundraising activities by former company executives in 2003 and prior periods. Under the terms of the voluntary settlement, Freddie Mac will pay a civil penalty of $3.8 million.

"Freddie Mac takes these issues, which relate to prior management of both the company and its Government Relations operation, very seriously," said spokesman David Palombi. "The settlement announced today is part of the company's ongoing efforts to put behind us regulatory and legal issues dating back to 2003 and earlier."

In 2003 Freddie Mac retained an outside law firm to investigate the company's campaign finance law compliance. Freddie Mac voluntarily disclosed the findings of its outside counsel to the FEC and cooperated fully with the Commission's subsequent investigation.

Source: Freddie Mac

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