Once More Into the Breach at Freddie Mac

Freddie Mac -- and its shareholders and taxpayers, who are pretty much the same thing these days -- got a lucky break today. John A. Koskinen agreed to step in as temporary chief executive.

Koskinen, 69, will take the reins from current CEO David M. Moffett, who had previously said he'd resign no later than this Friday, after only six months on the job.

Koskinen has been Freddi's non-executive chairman since last September, but that's not what makes him so promising. Earlier in his career, he successfully restructured Baldwin-United Corporation, a large diversified financial services company; provided management services to the Resolution Trust Corporation; and rehabilitated Mutual Benefit Life Insurance Company, the largest failed life insurance company in U.S. history.

Oh, yes. He also for a time ran the Palmieri Company, which was responsible for reorganizing non-rail subsidiaries of the Penn Central Transportation Co. and for disposing of the failed railroad's real estate and energy assets. So he's accustomed to working with train wrecks. Should fit right in at Freddie.

by Mark Stein