Case | HBS Case Collection | September 2010

Freddie Mac: Managing in Conservatorship

by Robert Steven Kaplan, Nitin Nohria and Ben Creo


Ed Haldeman has recently become CEO of Freddie Mac, one of three major government sponsored enterprises (GSEs) charged with supporting U.S. residential mortgage finance. The company was placed into conservatorship by the U.S. treasury on September 7, 2008. Conservatorship places various restrictions on Haldeman and the organization in terms of management. Haldeman's challenge is to lead Freddie Mac, build its culture, upgrade its operations, and generally prepare the organization for re-emerging from conservatorship. In the background, housing prices continue to deteriorate, and the company continues to lose money. In addition, political views continue to shift regarding the future regulatory and equity ownership frameworks for Freddie Mac as it emerges from this difficult period.

Keywords: Change Management; Financial Crisis; Mortgages; Leadership; Organizational Culture; Business and Government Relations; Financial Services Industry; United States;


Kaplan, Robert Steven, Nitin Nohria, and Ben Creo. "Freddie Mac: Managing in Conservatorship." Harvard Business School Case 411-048, September 2010.