Freddie Chief Apologizes for Scandal

Freddie Mac's new chief has officially apologized for the problems caused by the GSE's $5 billion accounting scandal, and he pledged to work with Congress to strengthen the regulation of the government-sponsored enterprises."I am sadly aware that Freddie Mac's accounting issues are the source of much of the current controversy," Richard Syron told the Senate Banking Committee. "And I apologize to this committee and the rest of the nation." Mr. Syron became Freddie's chairman and chief executive two months ago, and he stressed that GSE regulatory reform is "needed -- even overdue." But the former Federal Reserve Bank of Boston president warned against overreacting and possibly harming the nation's housing finance system. "With any episode such as this, it is critical to get the ship back on course without overreacting at the tiller," Mr. Syron said.