Updated from 9:19 a.m. EDTFreddie Mac ( FRE) is reshuffling its executive ranks, and as part of a number of changes at the top, the company terminated President and Chief Operating Officer David Glenn. In a press release Monday, Freddie Mac said Glenn was ousted because of "serious questions as to the timeliness and completeness of his cooperation and candor" with the legal staff of the board's audit committee, which was retained in January to review the circumstances of the accounting errors identified during the company's recent restatement. Earlier this year, the company said it would restate its 2000, 2001 and 2002 financial results. In January, Freddie
"During this review, I have become increasingly concerned about evidence that has come to light of weakness in controls and personnel expertise in accounting areas and the disclosure of misconduct on the part of Freddie Mac employees," Falcon's letter read. "The removal of members of the management team only goes a part of the way toward correcting serious problems -- concerns surrounding management practices and controls remain. I believe additional actions must be taken by the board to address these matters." Freddie Mac's board named Gregory J. Parseghian president and CEO and appointed Paul T. Peterson as chief operating officer. Martin F. Baumann has been named financial chief. The company also said Shaun F. O'Malley will serve as nonexecutive chairman of the board. Parseghian, 42, has been executive vice president and chief investment officer for Freddie Mac since June 2002. Peterson, 53, was previously an executive vice president responsible for overseeing all single-family division operations. Baumann, 55, was appointed executive vice president-finance in March, and O'Malley, 67, is the retired chairman of Price Waterhouse LLP. O'Malley has served on Freddie Mac's board since 2001, and he chairs the board's committee overseeing the restatement process. "Job number one is to get our financial statements right," Parseghian said in a statement. "We are committed to providing re-audited financial statements to the market as soon as possible and to taking any and all steps necessary to ensure that our people, processes and controls are of the highest caliber going forward." Falcon's letter also read that while Freddie Mac's "asset quality, capital positions and other safety and soundness measures remain strong, conduct has occurred that is inconsistent with OFHEO's expectation of prudent management practices." The agency added that it has had talks with members of the board and the new management team and "has their commitment of full cooperation."