Freddie Mac's CFO Found Dead

Written By: Madeleine Brooks

Breaking news this morning, April 22, 2009, Freddie Mac's Chief Financial Officer, David Kellerman, was found dead in his home early this morning. Freddie Mac is a government sponsored enterprise that was created in 1970. Freddie Mac expanded the secondary mortgage market by buying mortgages on the secondary market and sells them as mortgage-backed securities for people who are in investing in the open market.

David Kellerman was Freddie Mac's CFO and was in charge of the company's financial controls. David was working at the company for 16 years as an auditor in 1992. Before becoming the chief financial officer, David Kellerman also had job positions such as Freddie Mac's controller and principal accounting officer. The Securities and Exchange Commission (SEC) have been investigating Freddie Mac's financial statements and seeing that there are possible accounting violations that were produced for the first quarter of this year.

Freddie Mac had disclosed in its recent SEC filing that the company received a subpoena from the U.S. Attorney's Office searching documents pertaining to accounting and the disclosure of corporate-government matters. The subpoena was later withdrawn and Freddie Mac disclosed that information and it got turned over to the U.S. Attorney's Office in Virginia, where David Kellerman lives.

David Kellerman's wife reported to the local police that his death was a committed suicide. The police are doing a full investigation on the possible death of David Kellerman. David Kellerman is assumed to most likely have had a meltdown in regards to the $60 billion bailout and the accounting errors representing Freddie Mac.

References:
http://online.wsj.com/article/SB124040188797343215.html#mod=djemalertNEWS
http://en.wikipedia.org/wiki/Freddie_Mac
http://www.huliq.com/3257/80021/freddie-mac-cfo-david-kellerman-found-dead-apparent-suicide

New rules for Fannie and Freddie

By Sarah Horner

This article presented by CNNmoney.com, discusses some of the new rules and regulations Fannie Mae and Freddie Mac will have to follow. The article discusses the issues that these two companies have faced in the past months as well as where they are headed.
An excerpt from the article details what the companies have faced, "But as the mortgage crisis unfolded over the past two years, the federal government has leaned more heavily on Fannie and Freddie to keep the housing market afloat. With investors shying away from buying mortgage-backed securities, the two companies are essentially the only players in the arena nowadays. Regulators lifted the portfolio caps last March.
Fannie and Freddie, however, continue to suffer as delinquencies rise. On Friday, Freddie announced it would ask the U.S. Treasury for up to $35 billion more in assistance as it anticipates losses in its fourth-quarter results. The company has already drawn down $13.8 billion of the $100 billion in federal funds made available to it when it was placed into conservatorship in September." To learn about the upcoming changes these companies are facing click here.