Fannie and Freddie See Big Changes in Senior Management.

WASHINGTON -- Both Fannie Mae and Freddie Mac recently announced the pending departure of key executives who helped steer the government-sponsored enterprises through major financial restatements and accounting remediation.

Fannie Mae's chief financial officer, Robert Blakely, will leave his post when Fannie Mae files its final historical financial report later this year and be replaced by Stephen Swad, the company said last week.

Mr. Swad will assume the CFO position after Fannie Mae files its 2006 10-K annual report with the SEC, the company said. Mr. Swad will be responsible for returning Fannie Mae to timely financial reporting for future periods.

Mr. Swad previously served as executive vice president and chief financial officer for AOL. He was also an executive vice president of finance and administration at Turner Entertainment Group and vice president, financial planning and analysis at Time Warner. Mr. Swad is also a former partner at KPMG and has served as deputy chief accountant at the SEC.

Mr. Swad served on a Financial Accounting Standards Board's derivatives implementation committee and helped develop SEC rules on disclosures companies have to make about financial instruments and derivatives, Fannie Mae said in announcing the appointment.

After handing over the CFO title to Mr. Swad, Mr. Blakely will remain at Fannie Mae as an executive vice president until the end of this year.

And competitor Freddie Mac - unexpectedly - is losing its second highest executive, Eugene McQuade, a man who many thought would be its next chief executive officer.