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Freddie Mac


named Eugene McQuade president and operating chief, succeeding Paul Peterson.

The McLean, Va., mortgage giant said McQuade had been president and chief operating officer at FleetBoston Financial before the company's acquisition this spring by

Bank of America

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The hiring of McQuade represents the latest in a series of senior management changes led by CEO Dick Syron since he joined Freddie Mac in January. The company has added a new executive vice president of investments, a new general counsel, a new chief of staff and a new general auditor, in addition to the hiring of McQuade.

"Freddie Mac is grateful to Paul Peterson for his 15 years of service," Syron said. "He has served this company in a wide range of positions -- including helping start our retained portfolio, guiding our mortgage servicing and Single Family operations, and serving as chief operating officer for the past year."

The recent hirings followed a management shake-up that took place after the company was forced to restate earnings. Freddie got into trouble with regulators because of a series of accounting gimmicks it used to smooth out the volatility in its earnings.

Last November a restatement of the mortgage company's financial statements for the past three years revealed that total earnings at Freddie were understated by a total of $5 billion, as it tried to push out earnings to future quarters in order to ease the volatility.

The accounting scandal at Freddie, the nation's second-biggest buyer of mortgages, led to a number of top management firings, resignations, an overhaul of the firm's accounting practices and a $125 million fine.

On Thursday, Freddie shares traded at $64.62.