Freddie Mac Announces Resignation OF CEO David Moffet
Just another sign that the Mortgage Giants are really in much more trouble than the government regulators are letting on. David Moffet was CEO of Freddie Mac for just under 6 months and he must have thought the problems are too much too handle. The C-Level musical chairs at Freddie Mac continues. Is the Fannie Mae CEO Next?
Here is the press release:
McLean, VA – Freddie Mac (NYSE: FRE) today announced that its chief executive officer, David Moffett, has notified the chairman of the board of directors of his resignation from his position as chief executive and as a member of the board effective no later than March 13, 2009. The board of directors is working with the Federal Housing Finance Agency (FHFA) to appoint a successor to Moffett.
Moffett indicated that he wants to return to a role in the financial services sector. In his letter of resignation, he said, "I have enjoyed my time as CEO of Freddie Mac and I wish all the great employees the very best in the days to come."
John Koskinen, chairman of the board, said "We are very sorry to see David go. He made valuable contributions to Freddie Mac as the company transitioned into conservatorship." Koskinen also said, "We expect to name an interim CEO before March 13 to assume David's responsibilities once he leaves." He added, "The board remains fully committed to ensuring the company continues its critical role in supporting the housing finance system during this difficult economic period."
Management continues to estimate that FHFA, in its capacity as conservator of Freddie Mac, will submit a request to Treasury to draw an additional amount of approximately $30 billion to $35 billion under the Senior Preferred Stock Purchase Agreement between Freddie Mac and Treasury, following the timely filing of the company's annual report on Form 10-K with the Securities and Exchange Commission.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
Liked what you read? Then consider subscribing (free) to get the latest articles delivered directly via RSS or Email
March 3, 2009 4:56 PM
From the WSJ
"A person close to Mr. Moffett said his decision partly reflected "frustration" with a job offering little freedom of maneuver. "He's a private sector guy," this person said.
All major decisions must be cleared with the FHFA. In January, for instance, Freddie had to wait three weeks for an OK from the FHFA before it could put into effect an adjustment in the prices it pays for home mortgages. Even some fairly minor matters, such as decisions on whether to participate in panel discussions at conferences, must await FHFA approval. The agency has about a dozen officials at Freddie headquarters on a typical day and consults frequently with the CEO by phone or in person."
March 11, 2009 9:36 AM
News Release : Freddie Mac today announced that our board of directors has elected John Koskinen, most recently non-executive chairman, as the company’s interim CEO. Board member Robert Glauber becomes our interim non-executive chairman.
April 2, 2009 3:13 PM
Why can't we just close Freddi mac for new business (after cleaning up the toxic assets) already? The whole idea of giving mortgages to people who can't afford them is crazy.