Freddie Mac Names Fifth Third's Kari As Financial Chief

Freddie Mac (FRE) named veteran finance executive Ross J. Kari as its chief financial officer, completing recently appointed Chief Executive Charles E. Haldeman's efforts to remake the government-backed mortgage company's executive team.

Kari previously served as chief financial officer at Fifth Third Bancorp. (FITB), a Cincinnati bank. He has also served in positions at the Federal Home Loan Bank of San Francisco and Wells Fargo & Co. (WFC).

Last month, the company appointed mortgage-industry veteran Bruce M. Witherell as chief operating officer.

When he was appointed in July, Haldeman expressed eagerness to build a management team at Freddie.

Separately, Fifth Third said it appointed Controller Daniel T. Poston to succeed Kari, who was just appointed to the position in November. Poston served as its interim financial chief for several months last year. Poston joined Fifth Third in 2001.

Mark Hazel, Fifth Third's assistant controller, will serve as interim controller.

Federal regulators seized control of Freddie Mac and sister company Fannie Mae (FNM) last September. They are operating under conservatorship, which gives regulators the power ordinarily held by shareholders and boards, as they try to return to financial health. Major business decisions, and some minor moves, must be approved by the Federal Housing Finance Agency.

Freddie Mac's shares were up 0.5%, to $1.99 in after-hours trading, while Fifth Third's dropped 0.5%, to $10.15.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]