Freddie Mac CFO assassinated

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Offline DiscoDan

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Kellermann was replaced in October 2008, just two weeks after being promoted, by a man named Denny Fox.

If I read this correctly, he was unemployed at the time of his "suicide".

What made him quit after only two weeks?

http://www.forbes.com/feeds/afx/2008/10/09/afx5531484.html <-- reposted the link :P


PatAndrews

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It puts me in mind of the Rothschild suicide about 10 years ago that I believe was at first reported as a heart attack.

I'll find the link in a minute

Edit: Here it is http://www.nytimes.com/1996/07/12/business/international-business-rothschild-bank-confirms-death-of-heir-41-as-suicide.html?sec=health

Offline jofortruth

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Rather sounds like the DC Madame, Palfry case, all over again. She was found hung. Another witness to the thugs?
http://www.postchronicle.com/cgi-bin/artman/exec/view.cgi?archive=68&num=145249


It's always suspicous when the media comes out immediately after an event such as this and says SUICIDE. That's the first red flag to me. They didn't want him as a witness when the case goes to court, IMO. Typical M.O. of the rat bastards!

Don't believe me. Look it up yourself!

Offline agentbluescreen

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Kellermann was replaced in October 2008, just two weeks after being promoted, by a man named Denny Fox.

If I read this correctly, he was unemployed at the time of his "suicide".

What made him quit after only two weeks?

http://www.forbes.com/feeds/afx/2008/10/09/afx5531484.html <-- reposted the link :P

Well there you have it, he was a patsy who was 'elevated' to the position after the debacle by the former criminals in charge, who was then unceremoniously given a pink slip when the new criminals took over.

Offline Dig

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Pure speculation...

Wow, the SVP Michael May had a $2.5 million package and Kellerman only had a $120K package. Wonder if that means anything.  Who is Michael May and why is he getting so much mula from a place that is completely bankrupt?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Freddie Mac Approves Compensation Changes for Michael May and David Kellerman
http://dc.citybizlist.com/lstg/lstgDetail.aspx?id=41278
Reply to: info@citybizlist.com Date: 10/16/2008 9:30:10 AM



Summary

Freddie Mac, which sponsors the Federal Home Loan Mortgage Corporation Executive Deferred Compensation Plan, approved certain changes to the plan, that will permit participants to make a one-time election by October 31, 2008 to change the timing and form of the in-service distribution of their existing non-equity balances in the plan. As of October 7, 2008, Michael C. May, senior vice president — multifamily, has a balance of $2,548,442 and David B. Kellerman, interim chief financial officer, has a balance of $120,472 in the federal home loan mortgage executive deferred compensation plan.

Sec Filing

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation) sponsors the Federal Home Loan Mortgage Corporation Executive Deferred Compensation Plan (the "Plan"). On October 8, 2008, Freddie Mac approved certain changes to the Plan.

The Plan, as changed, will permit participants to make a one-time election by October 31, 2008 to change the timing and form of the in-service distribution of their existing non-equity balances in the Plan ("Deferrals"). Employee participants may (and, in the case of those participants who deferred payment until retirement, will be required under Internal Revenue Code Section 409A to) change their outstanding Deferral elections, and choose one of the following: (1) distribution of Deferrals in three installments on March 15, 2009 (30%), December 15, 2009 (approximately 30%) and May 15, 2010 (the remaining balance, including interest); or (2) distribution of Deferrals after a fixed number of years (but no earlier than 5 years after the one-time election), paid out in either a lump sum or 5, 10 or 15 annual installments. If an employee leaves the company for any reason after electing to receive in-service distributions in accordance with the above changes to the Plan, distributions subsequent to the separation date will be made in accordance with existing provisions of the Plan. As of October 7, 2008, Michael C. May, senior vice president — Multifamily, has a balance of $2,548,442 in the Plan and David B. Kellerman, interim chief financial officer, has a balance of $120,472 in the Plan.

Item 8.01. Other Events.

On October 9, 2008, the Federal Housing Finance Agency ("FHFA") issued a press release announcing several capital-related decisions, including the following:

Suspension of Capital Classifications During Conservatorship

The Director of FHFA has suspended capital classifications of Freddie Mac during the conservatorship, in light of the United States Treasury's Senior Preferred Stock Purchase Agreement. The existing statutory and FHFA-directed regulatory capital requirements will not be binding during the conservatorship.

Management During Conservatorship

FHFA, as conservator, has directed Freddie Mac to focus on managing to a positive stockholder's equity.

Disclosure of Capital Positions During Conservatorship

During the conservatorship, FHFA will not issue quarterly capital classifications of Freddie Mac. Freddie Mac will continue to submit capital reports to FHFA during the conservatorship and relevant capital figures (minimum capital requirement, core capital, and GAAP net worth) will be available in Freddie Mac's quarterly 10-Q filings, as well as on FHFA's website. FHFA does not intend to publish critical capital, risk-based capital, or subordinated debt levels during the conservatorship. In light of its new authority under the Housing and Economic Recovery Act of 2008, FHFA will be revising the minimum capital and risk-based capital requirements.
Second Quarter Capital Classification

The Director of FHFA has classified Freddie Mac as undercapitalized as of June 30, 2008, using FHFA's discretionary authority as provided in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended. FHFA stated that, although Freddie Mac's capital calculations for June 30, 2008 reflect that it met the FHFA-directed and statutory requirements for capital, the continued market downturn during late July and August raised significant questions about the sufficiency of its capital. The Director cited the following factors, which led to the need for conservatorship, in support of his decision to downgrade the classification to undercapitalized:

• Accelerating safety and soundness weaknesses, especially with regard to credit risk, earnings outlook, and capitalization;

• Continued and substantial deterioration in equity, debt, and MBS market conditions;

• The current and projected financial performance and condition of the company as reflected in its second quarter financial report and FHFA's ongoing examinations;

• The inability of the company to raise capital or to issue debt according to normal practices and prices;

• The critical importance of the company in supporting the country's residential mortgage market; and

• Concerns that a growing proportion of the company's statutory core capital consisted of intangible assets.

All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Hey this page is removed, but here is the cache:

DAVID KELLERMANN
http://www.freddiemac.com/bios/exec/kellermann.html
Acting Chief Financial Officer and Senior Vice President



David Kellermann was named acting chief financial officer in September 2008. Kellermann is a member of the company's leadership team and reports directly to CEO David M. Moffett.

As acting chief financial officer, Kellermann is responsible for the company's financial controls, financial reporting, tax, capital oversight, and compliance with the requirements of Sarbanes-Oxley. He also oversees the company's annual budgeting and financial planning processes.

Prior to this role, he served as senior vice president, corporate controller and principal accounting officer. In this position, his primary responsibility was to support the business with the production of timely, accurate, and well-controlled GAAP, fair value and segment earnings financial statements and external disclosures.

Before that, Kellermann served as the senior vice president and business area controller. As business area controller, he led the organization responsible for all accounting and finance for Freddie Mac’s lines of business.

Kellermann has been with Freddie Mac for more than 16 years. He began as a financial analyst/auditor in 1992, worked for several years in the company's securities sales and trading unit, and has served in a variety of positions in the company's capital markets division, most recently serving as vice president strategy execution and integration and the Investments and Capital Markets division controller.

He holds a M.S. in Finance from George Washington University and a B.S. in Political Science and Accounting from the University of Michigan. Kellermann is a volunteer board member of the D.C. Coalition for the Homeless.

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.
# # #

11/08
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

sociostudent

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What do you think the odds are now that May or anyone else will talk now, though? Probably zero. This was a warning to any potential bigmouth former exec's out there to keep their mouth shut, i assume.

Offline Dig

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Statement By Geithner On The Death Of David Kellerman
http://www.talkingpointsmemo.com/news/2009/04/statement_by_geithner_on_the_death_of_david_keller.php
(Editor's Note: This statement was provided by the Treasury Department On April 22, 2009.)


WASHINGTON -- The U.S. Department of the Treasury today released the following statement from Secretary Tim Geithner:

"On behalf of the Treasury family, we are deeply saddened by the news this morning of David Kellermann's death. Our deepest sympathies are with his family and his colleagues at Freddie Mac during this difficult time."

~~~~~~~~~~~~~~~~~~~~~~~~

Reminds me of the opening scenes in "Road to Perdition" or the scene in "The Firm" when the young lawyer realizes that the funeral for an employee seems rather cold and dehumanizing.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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What do you think the odds are now that May or anyone else will talk now, though? Probably zero. This was a warning to any potential bigmouth former exec's out there to keep their mouth shut, i assume.

IMO they would be insane not to, the only chance these guys have is to talk loud and often.  Look at how much work they do to hide an 8 month investigation.

Imagine if he was talking to AJ once a week?  Holy crappola, they would be so f-d.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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So is CEO David M. Moffett talking?

I wonder if Kellerman's files and computers have been confiscated.  If so, then how could it be a suicide?  Why steal people's belongings if he killed himself?  Now is where you see that the NWO truly feels they own each human.

They kill us then steal our shit.

Order out of Chaos.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

deconstructmyhouse

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possible suicide note found:

http://www.postchronicle.com/news/original/article_212224802.shtml

Michelle Malkin's all over it:
http://michellemalkin.com/2009/04/22/a-few-words-about-the-freddie-mac-cfo-suicide/
Photo Of David Kellerman: Suicide Note Found?
by Jack Ryan


Chief Financial Officer of Freddie Mac, David Kellerman, has been found dead this morning after what is being called an apparent suicide.

According to local police, they responded to a call from Kellermann's wife just after 5 am claiming that her husband had committed suicide at his Hunter Mill Estates home Wednesday morning.

"We were called from inside the house to come investigate an apparent suicide," said Fairfax County Police spokeswoman Mary Anne Jennings.

Because of legal ramifications, Jennings says she can't describe the nature of the suicide: "We're not to give you details of the condition of the body, except to say it was an apparent suicide," Jennings told WTOP.

Police have confirmed that no foul play is suspected, as the home showed no evidence indicating such.

David Kellerman, who was 41-years-old, had been at working for Freddie Mac for 16 yrs and was the acting Chief Financial Officer and Senior Vice President of the company.

According his BIO on Freddie Mac's Web site, he took over after Anthony "Buddy" Piszel resigned.

Fox News is reporting that a suicide note may have been found, but details are limited. We'll bring you more when we get it.

Still developing...

Offline Dig

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Why is there no information about David Kellerman besides the death?

Because AP is purposefully misspelling his name!!!!!!!!!!!!!!!

His name is Kellermann (as shown in the Freddie Mac Website)!!!!!!!!!!!

Not Kellerman!!!!!!!!!!!!!!!!!

Senior Vice President, Corporate Controller and Acting Chief Financial Officer
http://people.forbes.com/profile/david-b-kellermann/120880
Freddie Mac
McLean ,  VA
Sector: FINANCIAL  /  Mortgage Investment
Officer since March 2008

 
41 Years Old
On September 24, 2008, David B. Kellermann, age 41, Senior Vice President - Corporate Controller and Principal Accounting Officer, was appointed interim Chief Financial Officer, effective immediately. Mr. Kellermann was appointed Senior Vice President - Corporate Controller and Principal Accounting Officer in March 2008. Prior to that appointment, he served as Senior Vice President, Business Area Controller, starting in October 2006, and as Vice President, Strategy Execution and Integration from February 2005 until October 2006, during which time he also assumed responsibility for the Finance Program Management Office. Before that, Mr. Kellermann held the positions of Vice President, Valuation, Risk Management and Investment Process from November 2003 to February 2005 and Vice President, Mortgage Portfolio Investment Process from May 2003 to November 2003. Mr. Kellermann also held various other positions at our company since joining us in 1992, including Portfolio Management Director-Senior from March 2002 to May 2003. On September 24, 2008, served as Freddie Mac's Principal Accounting Officer prior to the appointment of Mr. Fox.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Freddie Mac Announces Temporary Postponement of Pricing of Five-Year Reference Notes(R)
http://people.forbes.com:80/profile/david-b-kellermann/120880
04.22.09, 12:41 PM EDT


MCLEAN, Va., April 22 /PRNewswire-FirstCall/ --Freddie Mac (NYSE: FRE) announced today that, in light of this morning's news concerning the death of David Kellermann, it believes it is appropriate to temporarily postpone, for at least one day, the pricing of its previously announced five-year Reference Notes security offering. Additional information regarding the timing of this offering will be released as it becomes available.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

deconstructmyhouse

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http://michellemalkin.com/2009/03/17/aig-derangement-syndrome/ 

  Iowa Sen. Charles Grassley suggested on Monday that AIG executives should take a Japanese approach toward accepting responsibility for the collapse of the insurance giant by resigning or killing themselves.

    The Republican lawmaker’s harsh comments came during an interview with Cedar Rapids, Iowa, radio station WMT. They echo remarks he has made in the past about corporate executives and public apologies, but went further in suggesting suicide.

    “I suggest, you know, obviously, maybe they ought to be removed,” Grassley said. “But I would suggest the first thing that would make me feel a little bit better toward them if they’d follow the Japanese example and come before the American people and take that deep bow and say, I’m sorry, and then either do one of two things: resign or go commit suicide.

    “And in the case of the Japanese, they usually commit suicide before they make any apology.”

Offline Dig

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www.fasb.org/ocl/FSP133B45C/52192.pdf

~~~~~~~~~~~~~~

David B. Kellermann

June 30, 2008

LETTER OF COMMENT
Mr. Russell G.Golden
Director of Technical Application and Implementation Activities
Financial AccountingStandards Board

P.O. Box 5116
NorwaIk,CT 06856-5 U6
Via email to director
Reference:

Proposed FSP FAS 133-b and FIN 45-c,Disclosures about Credit Derivatives and Certain Guarantees: AnAmendment ofFASB Statement No. 133 and FASB Interpretation No. 45 Dear Mr. Golden: Freddie Mac appreciates the opportunity to comment on the proposed FSP FAS 133-b and FIN 45-c, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No, 133 and FASB Interpretation No. 45 (the "proposed FSP").

Freddie Mac is a publicly held company charted by Congress in 1970 to increase the availability of funds for home ownership by developing and maintaining a secondary market for residential mortgages. We participate in the secondary mortgage market principally by providingour credit guarantee on the mortgage-related securities we issue, and investing in mortgages and mortgage-related securities. At May 31, 2008, Freddie Mac owned or guaranteed approximately$1.8 trillion of mortgages and mortgage-related securities.

We fully support the Board's efforts to improve disclosures about credit derivatives and guarantees by requiring similar disclosures for similar instruments. We also agree that disclosures should be consistent for similar risks and rewards. However, we have concerns about some of the proposed changes. Specifically we have comments on the proposed changes to paragraph 13(a) of FASB Interpretation No. 45, Guarantor Accounting ami Disclosure Requirementsfor Guarantees. Including Indirect Guarantees of Indebtedness of Others ("Interpretation 45") and their applicabilityto the transactions that are within the scope of Interpretation45.

We do not fully understand the Board's amendment10paragraph 13(a) of Interpretation 45. The amendment requires the prospective disclosure of the current status of the payment / performance risk of the guarantee. Examples of this disclosure include either current external credit ratings or internal categories or groupings based on the manner in which the guarantor manages its risk. This language is directed at publicly issued debt obligations that are rated by one of the rating agencies, or commercial type bans that financial institutions assign loan grades to when evaluating their loans for impairment. Guarantees on these types of instruments are typically provided by the financial guarantors that account for their guarantee obligation in accordance with Statement of Financial Accounting Standards No. 60, Accounting and Reporting hy Insurance Enterprises, as opposed to Interpretation 45.

We are not aware of any guarantees that are within the scope of Interpretation 45 where this information is available. As one of the world's largest financial guarantors, we account for the terms of our guarantee under Interpretation 45, and make the required disclosures. However, because our guarantee applies to consumer loans, there are neither external credit ratings nor internal categories that we are able to disclose whereas this type of information is neither available nor relevant for our guarantees. In addition to guarantees of consumer loans that back securities issued in securitizalion transaction, the requirements of Interpretation 45 are most commonly applied to letters of credit, indemnifications, indirect guarantees, etc.. The proposed amendment to paragraph 13(a) would not appear relevant to these types of guarantees either.

Given that guarantees within the scope of Interpretation 45 are almost always a component of a sccuriti/ation transaction, the performance of the underlying guaranteed collateral is already disclosed in accordance with the requirements of FASB Statement No, 140, Accounting for Transfers and Servicing Financial Assets and Extinguishment of Liabilities. We already disclose the risk characteristics of the underlying assets, the performance statistics, and the delinquency rates. We do not believe that anyadditional disclosures are necessary and would be redundant. As a result, we do not believe that the proposed amendment to paragraph 13(a) is necessary, and we would recommend removing it from the proposed FSP.

Freddie Mac appreciates the opportunity to provide our comments on the proposed FSP. If you have any questions about our comments, please contact David Kellermann (703-903-3200), Denny Fox (703-714-3160) or Timothy Kviz (703-714-3800).

Sincerely,
David B. Keuermann
Senior Vice President, Corporate Controller and PrincipalAccounting Officer
cc: Anthony Piszel
Executive Vice President and Chief Financial Officer
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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www.freddiemac.com/investors/trading/pdf/f3dk03312008.pdf
FEDERAL HOME LOAN MORTGAGE CORPORATION
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
FORM 3

1. Name and Address of Reporting Person
4. Issuer Name and Ticker or Trading Symbol Freddie Mac (FRE)
2. Date of Event Requiring Statement (Month/Day/Year) (Last) (First) (Middle)
6. If Amendment, Date of Original (Month/Day/Year) (Street)
3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
5. Relationship of Reporting Person to Issuer (Check all applicable) _______ Director _______ Other (specify _______ Officer (give below) title below) ________________________ ________________ (City) (State) (Zip)
7. Individual or Joint/Group Filing (Check applicable line) _______ Form filed by One Reporting Person _______ Form filed by More than  One Reporting Person
Table 1 – Non Derivative Securities Beneficially Owned
1. Title of Security
2. Amount of Securities Beneficially Owned
3. Ownership Form: Direct (D) or Indirect (I)
4. Nature of Indirect Beneficial Ownership
Common Stock
Reminder. Report on a separate line for each class of securities beneficially owned directly or indirectly.
(Print or Type Responses)
Kellermann David B
Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive McLean VA 22102
03/31/2008
SVP-Corporate Controller & Principal Accounting Officer
43,232 D
Common StockPage 2

FORM 3 (CONTINUED)
Table II – Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
2. Date Exercisable and Expiration Date  (Month/Day/Year)
3. Title and Amount of Securities Underlying  Derivative Security Date Exercisable Expiration Date Title Amount Or Number  of Shares
4. Conversion or Exercise Price of Derivative Security
5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
6. Nature of Indirect Beneficial Ownership Common Stock Explanation of Responses:___________________________________

Signature of Reporting Person

Date

(Print or Type Responses)
(1) 03/04/09 340 $60.75 D
(2) 09/09/09 430 $52.81 D
(3) 03/02/10 450 $41.38 D
(4) 03/02/10 610 $41.38 D
(5) 09/07/10 630 $44.78 D
(6) 03/01/11 220 $67.85 D
(7) 03/01/11 340 $67.85 D
(8) 03/01/11 390 $67.85 D
(9) 02/29/12 1,490 $64.35 D
(10) 03/12/13 1,210 $52.65 D
(11) 03/31/14 2,610 $59.51 D
(12) 04/10/15 2,680 $62.79 D

/s/ David B. Kellermann

04/10/2008
Common Stock
-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock-Options
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
(1) The option vested over five years. 25% vested after 24 months on March 5, 2001 and 25% vested on each March 5, 2002, March 5, 2003 and March 5, 2004.
(2) The option vested in three years. 25% of the option vested on each September 10, 2000 and September 10, 2001 and 50% vested on September 10, 2002.
(3) The option vested in three years. 25% of the option vested on each March 3, 2001 and March 3, 2002 and 50% vested on March 3, 2003.
(4) The option vested over five years. 25% vested after 24 months on March 3, 2002 and 25% vested on each March 3, 2003, March 3, 2004 and March 3, 2005.
(5) The option vested in three years. 25% of the option vested on each September 8, 2001 and September 8, 2002 and 50% vested on September 8, 2003.
(6) The option vested in three years. 25% of the option vested on each March 2, 2002 and March 2, 2003 and 50% vested on March 2, 2004.
(7) The option vested in three years. 25% of the option vested on each March 2, 2002 and March 2, 2003 and 50% vested on March 2, 2004.
(8) The option vested over five years. 25% vested after 24 months on March 2, 2003 and 25% vested on each March 2, 2004, March 2, 2005 and March 2, 2006.
(9) The option vested over five years. 25% vested after 24 months on March 1 2004 and 25% vested on each March 1, 2005, March 1, 2006 and March 1, 2007.
(10) The option vested over five years. 25% vested after 24 months on March 13, 2005 and 25% vested on each March 13, 2006, March 13, 2007 and March 13, 2008.
(11) The option vested in four equal installments beginning on April 1, 2005.
(12) The option is exercisable in four equal installments. The first two installments became exercisable on April 11, 2006 and April 11, 2007, and the next two
installments become exercisable on April 11, 2008 and April 11, 2009
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline DiscoDan

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http://www.forbes.com/feeds/ap/2009/04/22/ap6324648.html

Federal prosecutors in Virginia have been investigating Freddie Mac's business practices. But two U.S. law enforcement officials, who spoke on condition of anonymity because they were not authorized to discuss the Freddie Mac investigation, said Kellermann was neither a target nor a subject of the investigation and had not been under law enforcement scrutiny.

Now it gets interesting

Offline Dig

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Juicy?

Bachus contribution?

Only $1,000? Who cares? Bachus connection to bailouts?

~~~~~~~~~~~~~~~~~~~~~~~
http://www.campaignmoney.com/political/contributions/david-kellermann.asp?cycle=08
David Kellermann Contribution List in 2008

Name & Location   Employer/Occupation   Dollar Amount    Date   Primary/General   Contibuted To


Kellermann, David
VIENNA, VA
22182   Freddie Mac/Senior V. P.   $1,000   0 6/16/2008   G   BACHUS FOR CONGRESS COMMITTEE - Republican


Kellermann, David B
MCLEAN, VA
22102   Federal Home Loan Mortgage Corporat   $5,000   0 4/10/2007   P   FEDERAL HOME LOAN MORTGAGE CORPORATION POLITICAL ACTION COMMITTEE AKA FREDDIE PAC
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

deconstructmyhouse

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(---David Moffett acting chief of Freddie Mac resigned shortly after this report came out)

Freddie Mac Reports Fourth Quarter and Full-Year 2008 Financial Results
PRNewsWire News Releases
 
Files Annual Report on Form 10-K with the Securities and Exchange Commission (SEC)

MCLEAN, Va., March 11 /PRNewswire-FirstCall/ --

Summary

    * Fourth quarter 2008 net loss of $23.9 billion, or $7.37 per diluted common share, compared to a net loss of $25.3 billion, or $19.44 per diluted common share, in the third quarter of 2008. Losses were driven primarily by net mark-to-market declines on the company's derivative portfolio, guarantee asset and trading securities; increased credit-related expenses; and security impairments. The company also recognized an additional valuation allowance against its net deferred tax assets.
    * Full-year 2008 net loss of $50.1 billion, or $34.60 per diluted common share, compared to a net loss of $3.1 billion, or $5.37 per diluted common share, for the full-year 2007.
    * Net interest income of $2.6 billion in the fourth quarter of 2008, up $781 million from $1.8 billion in the third quarter of 2008. Net interest income for the full-year 2008 was $6.8 billion, up from $3.1 billion in 2007.
    * Freddie Mac's Conservator has submitted a request to the U.S. Department of the Treasury (Treasury) for an additional $30.8 billion in funding for the company under the Senior Preferred Stock Purchase Agreement (Purchase Agreement) with Treasury.
    * In 2008, Freddie Mac purchased or guaranteed more than $460 billion in mortgage loans and mortgage-related securities, helping to finance more than 1.7 million single-family homes and 620,000 units of rental housing.
    * Freddie Mac's foreclosure-prevention efforts enabled approximately 88,000 borrowers facing financial hardship to stay in their homes or sell their properties in 2008.
    * Full-year 2008 total administrative expenses declined by 10 percent from 2007 as the company took actions to reduce spending.

Freddie Mac (FRE) today reported a net loss of $23.9 billion, or $7.37 per diluted common share, for the quarter ended December 31, 2008, compared to a net loss of $25.3 billion, or $19.44 per diluted common share, for the quarter ended September 30, 2008.

For the full-year 2008, the company reported a net loss of $50.1 billion, or $34.60 per diluted common share, compared to a net loss of $3.1 billion, or $5.37 per diluted common share, for the full-year 2007.

"Freddie Mac is working hard to serve our expanded mission in this historic crisis, by doing all we can to help stabilize the financial markets and hasten the recovery in housing," said David Moffett, Freddie Mac's chief executive officer. "We absorbed heavy financial losses last year, driven primarily by mark-to-market items and credit-related expenses. But we also provided vital liquidity to the strapped housing market - injecting more than $460 billion in mortgage funding in 2008."

Freddie Mac Chairman John Koskinen said, "Going forward, Freddie Mac has an essential role to play in ensuring the Administration's new Making Home Affordable program is a success. We are committed to taking a leadership role in this important initiative and to doing everything we can to keep millions of families in their homes."

Fourth quarter 2008 results were driven primarily by net mark-to-market losses of $13.3 billion on the company's derivative portfolio, guarantee asset and trading securities due to the impacts of spread widening and declines in interest rates. In addition, the company recorded $7.2 billion in credit-related expenses related to the continued deterioration in economic conditions during the fourth quarter, including a rapid deterioration in labor markets, steeper declines in home prices, and a drop in consumer confidence to record lows. Results were also impacted by security impairments on the company's available-for-sale securities of $7.5 billion primarily due to sustained deterioration in the performance of the underlying collateral on the company's non-agency mortgage-related securities.

In the fourth quarter of 2008, the company recognized an additional valuation allowance of $8.3 billion against its net deferred tax assets.

As a result of the fourth quarter 2008 net loss and mark-to-market effects on the company's accumulated other comprehensive income (loss) (AOCI) related to unrealized losses on available-for-sale securities, the company's stockholders' equity (deficit) totaled $(30.7) billion at December 31, 2008. Pursuant to Treasury's funding commitment under the Purchase Agreement, the Director of the Federal Housing Finance Agency (FHFA) has submitted a request to Treasury for funding in the amount of $30.8 billion. The company expects to receive such funds in March 2009.

As a result of this draw, the aggregate liquidation preference of the company's senior preferred stock will increase to $45.6 billion, and Treasury, the holder of the senior preferred stock, will be entitled to annual cash dividends of approximately $4.6 billion. An initial cash dividend on the senior preferred stock was paid on December 31, 2008, for the period September 8, 2008 through December 31, 2008, in the aggregate amount of $172 million.

On February 18, 2009, Treasury Secretary Geithner issued a statement outlining further efforts by Treasury to strengthen its commitment to Freddie Mac by increasing the funding available from Treasury under the Purchase Agreement from $100 billion to $200 billion, affirming Treasury's plans to continue purchasing Freddie Mac mortgage-related securities and increasing the size limit on the company's mortgage-related investments portfolio at December 31, 2009 by $50 billion to $900 billion with a corresponding increase in the amount of allowable debt outstanding.

Freddie Mac is under Conservatorship and is dependent upon the continued support of Treasury and FHFA in order to continue operating its business.



Offline Dig

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^, yeah they are calling him the CFO, but he was also the top officer, there is no CEO since Moffett left.  This is like the Ken Lay CIA Pulmonary Embolism Pill (PEP), he was the head cheese...


http://finance.aol.com/company/federal-home-loan-mortgage-corporation/fre/nys/overview

Key Executives: FRE
Name   Title   Officer Since
David B. Kellermann      CFO   -
Raymond G. Romano      Chief Credit Officer   -
Denny R. Fox      Chief Accounting Officer   -
James R. Egan      Chief Accounting Officer   -
Robert E. Bostrom      General Counsel   -
Jerry Weiss      Senior VP   -
Anurag Saksena      Senior VP   -
Kirk Die      Senior VP   

FEDERAL HOME LN MTG CORP Profile

Freddie Mac (officially the Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise that, along with sister Fannie Mae, creates liquidity in the residential mortgage market by guaranteeing, purchasing, securitizing, and investing in home loans. The company buys conventional residential mortgages from mortgage bankers, mitigating risk and letting them provide mortgages to those who otherwise wouldn't qualify. It also provides assistance for affordable rental housing. In September 2008 the US government seized the company, crippled by the mortgage crisis, in one of the largest government interventions in business since the Great Depression.

2007 Sales   2007 Sales Growth   2007 Net Income   2007 Employees
$43,104,000,000   %   $-3,094,000,000   5,000

Top 10 Institutional Holders: FRE
Name   Shares   Estimated Value of Shares *   Holdings   Shares Outstanding   Turnover Rating
Horizon Asset Management, Inc.   22.97 M   16.77 M   0.23%   3.55%   Medium
Vanguard Group, Inc.   22.4 M   16.35 M   0.00%   3.46%   Low
Capital Research Global Investors   20.19 M   14.74 M   0.00%   3.12%   Low
Barclays Global Investors, N.A.   14.44 M   10.54 M   0.00%   2.23%   Low
Loomis, Sayles & Company, L.P.   12.25 M   8.94 M   0.06%   1.89%   Medium
Renaissance Technologies Corp.   10.5 M   7.66 M   0.03%   1.62%   Medium
State Street Global Advisors (US)   6.14 M   4.48 M   0.00%   0.95%   Low
TIAA-CREF   3.72 M   2.72 M   0.00%   0.57%   Low
Barclays Global Investors (UK) Ltd.   2.24 M   1.63 M   0.00%   0.35%   Low
California Public Employees' Retirement System   2.15 M   1.57 M   0.00%   0.33%   Low

Total % of Shares Owned by: Top 10 Holders 18.07% Top 25 Holders 21.13% Top 50 Holders 23.15%

 
* Value of shares is estimated based on the closing price of the month in which the shares were purchased.

Top 10 Mutual Fund Holders: FRE
Name   Shares   Estimated Value of Shares *   Holdings   Shares Outstanding   Turnover Rating
CIF Global Equity Fund   1.5 M   51.22 M   1.13%   0.23%   —
Loomis Sayles Bond Fund   2 M   32.78 M   5.12%   0.31%   Low
Vanguard Total Stock Market Index Fund   5.06 M   8.65 M   0.01%   0.78%   Low
Loomis Sayles Strategic Income Fund   4.79 M   8.20 M   1.81%   0.74%   Medium
American Funds Capital Income Builder   8.8 M   6.42 M   0.02%   1.36%   Low
Kinetics Paradigm Fund   8.29 M   6.05 M   0.47%   1.28%   Low
Vanguard Small-Cap Index Fund   6.9 M   5.04 M   0.05%   1.07%   Low
Vanguard Extended Market Index Fund   2.77 M   4.74 M   0.04%   0.43%   Low
CREF Stock Account   2.6 M   1.90 M   0.00%   0.40%   Low
Vanguard Small-Cap Growth Index Fund   1.42 M   1.04 M   0.03%   0.22%   Medium

Total % of Shares Owned by: Top 10 Holders 6.82% Top 25 Holders 8.85% Top 50 Holders 10.51%

 
* Value of shares is estimated based on the closing price of the month in which the shares were purchased.

Top 10 Other Holders: FRE
Name   Shares   Estimated Value of Shares *   Holdings   Shares Outstanding   Turnover Rating
Susquehanna International Group, LLP   469,847   342,988.00   —   0.07%   High
BNP Paribas Arbitrage SA   157,955   115,307.00   —   0.02%   High
Geduld E E   60,000   43,800.00   —   0.01%   Medium
KBC Groep NV   40,210   29,353.00   —   0.01%   Low
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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There is not one statement by the head of the largest mortgage company in the world for 8 months.

Not one statement.

The Internet is completely scrubbed.

Try and find any piece of information on this guy with either spelling

Kellerman and Kellermann

without the word suicide in it.

He was the chief of a multi billion dollar bailout and his entire history is wiped clean in less than 24 hours.

Yup, coincidence, nothing to see here.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline mike E. dangerously

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Mr.Kellerman may have known where all that bail-out money goes and with the SEC investigating he became a liability to Freddie Mac and they dealt with him the way traitors had been dealt with throughout history by hanging him as a warning to others. 
"What is it that sucks at my soul so acutely? What emptiness drives me out into the night time and again to fight forces I cannot hope to defeat.?"- The Sandman

Offline DiscoDan

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There is not one statement by the head of the largest mortgage company in the world for 8 months.

Not one statement.

The Internet is completely scrubbed.

Try and find any piece of information on this guy with either spelling

Kellerman and Kellermann

without the word suicide in it.

He was the chief of a multi billion dollar bailout and his entire history is wiped clean in less than 24 hours.

Yup, coincidence, nothing to see here.

Yep, that and they keep saying he was still the CFO, when in fact he hadn't been so since 10/09/08.

Offline Dig

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Update on CEO info:

Freddie Mac's chief executive resigns
http://www.marketwatch.com/News/Story/freddie-macs-chief-executive-resign-story.aspx?guid=%7BC34B3B16%2D6E7F%2D4266%2DB2A4%2D88DC387AB47B%7D
By MarketWatch Last update: 12:02 p.m. EST March 2, 2009


NEW YORK (MarketWatch) -- Government mortgage giant Freddie Mac said Chief Executive David Moffett will resign no later than March 13, and the company is working with the Federal Housing Finance Agency to appoint his successor.

Freddie's shares were recently down 2.4% at 41 cents. The stock is off 44% so far this year and 98% in the last year. The company, which has been under government conservatorship since September after it and sister company Fannie Mae ran up billions of  dollars in losses and saw their portfolios suffer amid rising foreclosures and exposure to subprime mortgages, also said it continues to believe the FHFA will submit a request for another $30 billion to $35 billion from the Treasury Department's Troubled Asset Relief Program.
Moffett told Freddie's board that he wants to return to a role in the financial-services sector. Moffett took over as Freddie's CEO in September amid the federal government's takeover plan. Freddie is slated to report its fourth-quarter results in the next several days, and it is expected to post increased losses and another request for more capital from the federal government.

~~~~~~~~~~~~~~~~~~~~~~~~

Freddie Mac names John Koskinen as interim CEO
http://www.marketwatch.com/news/story/story.aspx?guid={a0606810-a21e-4d24-ad0d-c2447ff8f2f0}
By John Ittner Last update: 8:56 a.m. EDT March 11, 2009


NEW YORK (MarketWatch) -- Freddie Mac said Wednesday that its board of directors had named John Koskinen as the company's interim chief executive officer and Robert Glauber as its interim non-executive chairman. Both appointments will be effective upon the resignation of current CEO David Moffett, who had previously announced that he would resign from his position as chief executive officer and as a member of the board by March 13. Koskinenhad has served as non-executive chairman of Freddie Mac since September 2008. Previously he was president of the United States Soccer Foundation for four years. Glauber initially joined the Freddie Mac board of directors in 2006.

~~~~~~~~~~~~~~~~~~~~~~~

3/2/2009 CEO Moffett Resigns
3/11/2009 Interim CEO John Koskinen Named
4/22/2009 CFO Kellermann is DEAD!
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Yep, that and they keep saying he was still the CFO, when in fact he hadn't been so since 10/09/08.


He was the CFO, where does it say he was not?

He was appointed to the CFO position in October 2008
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline DiscoDan

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He was the CFO, where does it say he was not?

He was appointed to the CFO position in October 2008

http://www.forbes.com/feeds/afx/2008/10/09/afx5531484.html

Anti_Illuminati

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http://www.istockanalyst.com/article/viewarticle/articleid/3203088

Freddie Mac (NYSE:FRE), Accounting Violations And More
By: Financial Ninja   Wednesday, April 22, 2009 11:05 AM

Freddie Mac Acting CFO David Kellermann Found Dead by Police: " Freddie Mac. (NYSE:FRE) Acting Chief Financial Officer David Kellermann was found dead early today in his home in the Washington suburbs," police said.

The “unintended” death is under active investigation and a cause has yet to be determined, Fairfax County Officer Shelley Broderick said. Kellermann’s body was found around 4:48 a.m. local time at a home in Reston, Virginia, police said. There were no signs of “foul play,” Broderick said."

FN: The Wall Street Journal (WSJ) is digging deeper and has linked the probable suicide to accounting fraud. Rumors are flying about RECENT accounting violations.

Freddie's Acting CFO Found Dead: "Investigators from the Securities and Exchange Commission and Justice Department have been questioning officials of Freddie Mac about possible accounting violations and other matters in recent months, the company disclosed in March.

Freddie disclosed in the recent SEC filing that in September it received a federal grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York seeking documents related to accounting, disclosure and corporate governance matters. That subpoena was later withdrawn, Freddie has disclosed, and the investigation was taken over by the U.S. Attorney's Office for the Eastern District of Virginia.

Freddie said the SEC also is investigating and has told the company to preserve documents. Freddie has said it is "cooperating fully in these matters."


FN: Where have we seen this before? Or right, ENRON. A trip down memory lane...

Former Enron exec dies in apparent suicide: "Former Enron Corp. vice chairman J. Clifford Baxter was found dead in his car in a Houston suburb early Friday, the victim of an apparent suicide, police said.

Baxter made millions on the sale of Enron stock, but reportedly was unhappy with Enron's business practices and resigned as vice chairman in May. He had remained as an Enron consultant.

Enron, once a giant energy corporation, has collapsed in the biggest bankruptcy filing in U.S. history amid accusations of mishandling of funds and shredding of crucial documents. Enron and its accounting firm, Andersen LLP, are under congressional investigation."

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youtube video link of the neighbor's.
http://www.youtube.com/watch?v=k8yzeMNLqQ8

Offline Dig

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BLAST FROM THE PAST- EIGHT MONTHS LATER...ASSASSINATION!


Fannie Mae, Freddie Mac drop sharply
http://www.marketwatch.com/news/story/story.aspx?guid=%7Bd67243d1-342c-446e-9606-5462f1b6c746%7D&print=true&dist=printMidSection
By Greg Robb & Steve Gelsi, MarketWatch
Last update: 12:01 p.m. EDT Sept. 8, 2008


WASHINGTON (MarketWatch) -- Treasury Secretary Hank Paulson on Monday said the government's takeover of Fannie Mae and Freddie Mac was necessary, but it was "not something I wanted to do." Meanwhile, the biggest potential government bailout of a generation sparked a rally in the Dow Jones Industrial Average after big jumps in Europe and Asia. See Market Snapshot. Under a sweeping plan, the two companies will be run by the government indefinitely, with their chief executives to be replaced and the government investing up to $100 billion in each firm to keep them solvent.

'Monday morning the business will open as normal, only with stronger backing for the holders of mortgage-backed securities, senior debt and subordinated debt.' — James Lockhart, Federal Housing Finance Agency

While the two entities will survive, their stock prices fell sharply. Fannie Mae subtracted 85% to $1.09 and Freddie Mac cratered 80% to $1.02. However, the debt issued by the two agencies fared relatively well. See Bond Report. Still, the initial optimism on Wall Street started to fade by midday, with the Dow Jones Industrial Average giving back more than half of its 300 point gain at the open as the reality of a moribund U.S. housing market persisted "The Fannie and Freddie takeover may provide initial relief to bank stocks and brokers, but credit, liquidity and economic issues remain," UBS said in a note to clients.

In an interview with CNBC-TV, Paulson confirmed that overseas holders of Fannie Mae and Freddie Mac debt were beginning to unwind their positions and were reluctant to buy more. Asked about the value of shares of Fannie and Freddie, the former top Goldman Sachs executive said the question can only be answered by looking at the future. "There are very reasonable scenarios where the housing market recovers ... where there will be a value in the shares," said Paulson, who said taxpayers will be paid back first before shareholders. The New York Times reported that the CEOs of Fannie Mae and Freddie Mac stand to collect millions of dollars in severance compensation in the wake of the government's takeover of the mortgage giants.
 
Fannie's Daniel Mudd could get $9.3 million in severance pay, retirement benefits and deferred compensation if his dismissal is "without cause," the consulting firm James F. Reda & Associates told the Times. And Freddie's Richard Syron could get a package valued at $14.1 million after a clause was added to his employment contract in mid-July, the Times reported. They'll leave their positions after a brief transitional period. As part of the bailout, Treasury will start buying Freddie and Fannie's mortgaged-backed debt in the open market. The companies will also end all lobbying of the government and eliminate dividends. Together, Fannie and Freddie form a cornerstone of the U.S. mortgage market, owning or guaranteeing nearly half the home loans in the country's roughly $12 trillion mortgage market. Over the past year, the companies have recorded combined losses of around $14 billion. The move puts the U.S. government at risk to lose tens of billions of dollars. Burt Ely, a banking regulatory expert in Washington, said there was no way to know how much the takeover would ultimately cost the taxpayer. "We're flying in the dark here," Ely said. A rough estimate may not be possible for a few months, he added.

Necessary action
The end for Fannie and Freddie's independence came shortly after 11 a.m. on Sunday, when Paulson told reporters that a careful review of the two mortgage giant's books made it "necessary to take action." James Lockhart, the head of Federal Housing Finance Agency that will now oversee Freddie and Fannie, said the recession in the housing market ultimately ate away at the two firms' capital. "As house prices, earnings and capital have continued to deteriorate, Fannie and Freddie's ability to fulfill their mission has deteriorated. In particular, the capacity of their capital to absorb further losses while supporting new business activity is in doubt," Lockhart said. There were reports that auditors called in by Treasury and FHFA had found accounting irregularities at the two firms and that their capital base was smaller than expected. At first, Paulson had talked in terms of an equity investment. But after the review, a full-scale takeover of the two companies was seen as the only option. Federal Reserve Chairman Ben Bernanke said that he fully supported the government takeover. "These necessary steps will help to strengthen the U.S. housing market and promote stability in our financial markets," Bernanke said.

FHFA in charge
Technically, the government placed the two companies in conservatorship, under which the FHFA will assume the power of the board and management.
The move won't eliminate Freddie and Fannie's common stock, Paulson said, adding that it "does place common shareholders last in terms of claims on the assets of the enterprises." Preferred stock shareholders will be "second, after the common shareholders, in absorbing losses," he said. One quirk in the plan is that Treasury will allow Fannie and Freddie to actually increase their mortgage portfolios over the next year. Under the revamped executive structure for Fannie, Mudd will be replaced by Herb Allison, the former vice chairman of Merrill Lynch and the former chairman of the TIAA-CREF teachers' pension funds. Syron will be replaced by David Moffett, a former vice chairman and chief financial officer of U.S. Bancorp.

In essence, the plan is similar to a Chapter 11 bankruptcy that will give the two companies breathing room to reorganize. Paulson said the plan was a "time out" to stabilize the two companies. Congress will have to decide their future role and structure, he said. "Monday morning the business will open as normal, only with stronger backing for the holders of mortgage-backed securities, senior debt and subordinated debt," Lockhart said. To support the plan, Treasury will purchase up to $100 billion in each company to ensure they maintain a positive net worth. If the FHFA determines that Fannie and Freddie's liabilities have exceeded its assets under accounting rules, the Treasury will contribute cash capital to the firms to make up the difference, receiving senior preferred stock in return. It will also buy mortgage-backed securities from the firms in the open market, with a lending facility held at the Federal Reserve Bank of New York. Under the terms of the proposal, the government would make periodic injections of funds by buying either convertible preferred shares or warrants in the two companies as needed, as opposed to a large, up-front cost.

Massive assets involved
The bailout involves total assets that would dwarf the savings-and-loan rescue in the 1980s that shook the banking sector to its core. Fannie and Freddie hold roughly $1.5 trillion in direct debt, guarantees on which could be as large as $5 trillion as well as possible off-balance sheet obligations that could reach $3 trillion, according to recent estimates from Ladenburg Thalmann & Co. Fannie Mae's market capitalization stands at $7.5 billion and Freddie Mac's is about $3.3 billion. Together, Fannie Mae and Freddie Mac form the cornerstones of the U.S. mortgage market and own or guarantee almost half the home loans in the country's roughly $12 trillion mortgage market. Over the past year, the companies have recorded combined losses of around $14 billion. Some reports estimated the government's cash injection ultimately could be between $15 billion and $20 billion. "In the end, the ultimate cost to the taxpayer will depend on the business results of [Freddie and Fannie] going forward," Paulson said.

Finally over
The plan ends a long downward spiral for the firms, created to help expand home ownership and provide a secondary market for home loans.
Because they were created by government, the two firms enjoyed more favorable terms in the marketplace. Investors around the world viewed their debt as virtually risk-free. Word of the Treasury Department takeover first came out late Friday, and sent the shares of both companies plunging in after-hours trading, with Fannie Mae giving up 25% of its value and Freddie Mac falling by about 20%. Those losses only added to the misery that has already wiped out some 80% of the companies' share values this year. Under the agreement, Treasury will immediately receive warrants to purchase common stock of each company representing 79.9% of the common stock of each firm.

Treasury will also receive $1 billion of senior preferred stock in each firm. All dividends for preferred stockholder has been suspended, a move which prompted S&P to cut its rating on Fannie and Freddie's preferred stock to junk grade. Beginning at the end of the first quarter of 2010, the two firms will start repaying Treasury on a quarterly basis. Fannie and Freddie's retained mortgage and mortgage-backed securities portfolio may not exceed $850 billion as of the end of 2009 and must decline by 10% per year until it reaches $250 billion. The Treasury plan also helps the 12 Federal Home Loan Banks. Some of these banks have been lending large sums to mortgage firms this year and as a result, have been the focus of concern in the markets. Under the agreement, these banks will be able to get loans from Treasury. But Lockhart said he didn't foresee problems at the home loan banks. "The Federal Home Loan Banks have performed remarkably well over the last year as they have a different business model than Fannie and Freddie and a different capital structure that grows as their lending activity grows. They are joint and severally liable for the bank system's debt obligations and all but one of the 12 are profitable," Lockhart said.

Ripple effect
The changes to Fannie and Freddie promises to have an impact on how Americans buy and sell houses for years to come. When firms like Washington Mutual, Wachovia and other big banks make home loans, they sell them to Fannie and Freddie, who then package the loans into pools and resell them to investors, or hold them themselves.

The rise of the securitization market means some of the most toxic debt securities backed by risky loans have made their way around the global banking system. Fannie and Freddie long enjoyed the implied support of the federal government that has allowed them access to capital in the market at advantageous terms. Banks and thrifts are in the business of making loans, and there is no bigger loan the average U.S. consumer will take on than a mortgage. Without buyers like Fannie and Freddie, big mortgage lenders would be in even more trouble than they are. See full story. Banks and thrifts also hold more than $1 trillion in Fannie and Freddie bonds because they were considered as good as cash. Without a bailout, banks and thrifts would have to raise more capital because Fannie and Freddie debt would have to be written down or sold. However, Paulson said that the federal banking agencies report only a "limited number" of small banks have holdings of Fannie and Freddie assets "that are significant compared to their capital." The agencies called on banks worried that their capital would be diminished below regulatory standards to contact Washington so that restoration plans can be undertaken.

End of an era
Fannie Mae was created in 1938 as Congress attempted to grow the secondary mortgage market and expand home financings after the Great Depression. Freddie Mac was formed in 1970 as a competitor and with the same intention in mind. Fannie Mae and Freddie Mac provide liquidity in the mortgage market by investing in home loans made by banks and other financial institutions, insuring payment of those loans, and selling them into the secondary market. But the two were generally allowed to have less capital in reserve than other financial firms, so when the mortgage bubble burst and the contagion spread from low-quality loans to the higher quality loans Fannie and Freddie deal with, they had less of safety net.

In recent months, investors and political figures fiercely debated the idea of a government takeover or some other form of rescue. Critics of the idea -- including many Republicans and longtime opponents of the two mortgage agencies -- had argued the firms own mismanagement caused their downfall and should be allowed to fail. However, damaging accounting scandals, questionable management, inadequate capital reserves and a crashing residential real estate market proved too much for even the Bush administration. During an election year in which the housing market meltdown has become a central issue, the market lost confidence in the mortgage lenders and their financing costs rose to unsustainable levels. Republican and Democratic leaders alike began to call for Washington to take greater steps to safeguard the capital structure of the government-sponsored enterprises.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Eckhart Tolle

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Freddie Mac CFO faced extraordinary pressures
Presumed suicide amid prospect of ongoing losses, regulatory probes
   
Video
  Freddie Mac official found dead



April 22: David Kellermann, the acting chief financial officer of Freddie Mac, was found dead at his home Wednesday morning. CNBC’s Hampton Pearson reports.

By Patrick Rizzo and John W. Schoen

msnbc.com
updated 32 minutes ago
http://www.msnbc.msn.com/id/30350095//

In extraordinary times, exceptional things are often asked of ordinary people.

There’s no doubt that Freddie Mac has been going through unimaginable changes in the past year that have put its officers and employees under tremendous pressure: an ongoing accounting investigation by regulators; the prospect of continued housing-related losses; and uncertainty about the long-term viability of the company.

That’s the environment into which David Kellermann was thrust when he was named interim-chief financial officer in September. And it was the world he left behind, along with his wife and young child, when he died Wednesday, hanged in his basement, an apparent suicide.


A self-described "financial services executive with close to 20 years of experience," including degrees from the University of Michigan and George Washington University’s Graduate School of Business, Kellermann was an expert in the complex mortgage-backed securities and derivatives that are clogging the nation’s home mortgage industry.

“With that critical experience, I have succeeded at an ever-increasing level of responsibility in managing a Company with $1 trillion-plus balance sheet,” Kellermann wrote in his profile on the LinkedIn social networking site. “My definition of success is the full utilization of my experience and abilities, and those of a carefully chosen and trained team along the lines of excellence.”

By all accounts, Kellermann was devoted to his job and to Freddie Mac’s mission of expanding homeownership to millions of American families. Neighbors said he also devoted himself to the American Dream that was Freddie Mac’s mission to advance.

“They described this family as a family that embraced life,” CNBC’s Hampton Pearson reported. “First on the block to put up Christmas decorations, that kind of thing, and participate in neighborhood functions going on.”

Word of Kellermann's death brought a series of condolences from government officials.

"Our deepest sympathies are with his family and his colleagues at Freddie Mac during this difficult time," said Treasury Secretary Tim Geithner in a statement.

“David was a man of great talents,” said John Koskinen, Freddie Mac’s interim CEO, also in a statement. “He dedicated those talents to Freddie Mac for more than 16 years, serving in many business and finance capacities before recently taking the reins as acting chief financial officer. His extraordinary work ethic and integrity inspired all who worked with him. But he will be most remembered for his affability, his personal warmth, his sense of humor and his quick wit. David was a friend to many in the Freddie Mac family, and we mourn his passing.”

But the challenges the 41-year-old Kellermann faced in his job would test the most seasoned financial executives. Last September, after the falling home prices and the global financial panic sent mortgage giants Fannie Mae and Freddie Mac reeling, the government stepped in and nationalized the two quasi-independent agencies as the rising pace of foreclosures sent them reeling toward insolvency.

More on this story
  Police probing death of Freddie Mac official

Last month, Freddie Mac accounted it had lost more than $50 billion last year. Despite $44 billion in government loans and a $200 billion backstop in guarantees from the Treasury, Freddie and Fannie still face huge losses as home prices continue falling in many parts of the country.

“Freddie Mac, together with Fannie Mae, are going to be suffering huge losses,” said Peter Wallison, a fellow at the American Enterprise Institute and author of several books on Fannie and Freddie. “Many of these have already come to light. I expect many more to come to light.”

The company, which owns or guarantees about 13 million mortgages, is also the subject of ongoing investigations by both the Securities and Exchange Commission and the Justice Department, concerning accounting issues.

Freddie Mac is also undergoing an internal probe into a $2 million lobbying campaign aimed at quashing proposed new regulations on the company before the housing market collapsed, the Associated Press reported.

One of Washington's leading law firms, Covington & Burling LLP, spent more than a month interviewing current and former Freddie Mac employees and executives, the AP reported. The inquiry followed reports that the company had secretly hired Republican consulting firm DCI Group of Washington to stop a proposal in the Senate in 2005 sponsored by Sen. Chuck Hagel, R-Neb., who has since left the Senate.

The legislation would have forced Freddie Mac and Fannie Mae to sell hundreds of billions of dollars worth of assets from their portfolios of mortgages and mortgage-backed securities. At the time, the portfolios were highly lucrative but their value plunged when the housing market collapsed.

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^ Yup it was the pressure.  After everyone forgot about Freddie Mac and we are focused on the $13 Trillion going to International Banking Elite, he decides there is too much pressure.

THE ONLY WAY HE WAS UNDER PRESSURE IS IF HE WAS BEING INVESTIGATED!
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http://www.cfo.com/article.cfm/13525282/?f=rsspage

Freddie Mac CFO Dead in Apparent Suicide
The acting CFO and former controller of Freddie Mac is reported dead this morning from suicide, eight months after replacing former CFO Anthony S. Piszel.
Tim Reason - CFO.com | US

April 22, 2009

The acting CFO of Freddie Mac was found dead in his Fairfax, Virginia home this morning, apparently from suicide.

David Kellermann, 41, was the acting CFO of embattled Freddie Mac, and had been with the company since 1992. The former corporate controller and principal accounting officer, Kellermann was named acting CFO last September, the day after the company fired CFO Anthony S. Piszel, and the same day that the company announced that it was the target of two federal investigations — one by the Securities and Exchange Commission Enforcement Division and one by the U.S. Attorney's Office for the Southern District of New York.

There is no evidence that Kellermann was personally the subject of the SEC or U.S. Attorney investigations. On the day of his appointment to acting CFO, however, the company announced that the U.S. Attorney's office subpoena sought documents relating to accounting, disclosure, and corporate governance matters dating back to Jan. 1, 2007. Freddie said it would cooperate with the probes. As controller and principal accounting officer, Kellermann's primary responsibility, according to a company biography, was "to support the business with the production of timely, accurate, and well-controlled GAAP, fair value and segment earnings financial statements and external disclosures."

The local television station, WUSA 9News Now, said Fairfax County Police went to Kellerman's home at 5:00 a.m. after his wife reported that he had committed suicide. A police spokeswoman has since confirmed that police are investigating his death as a possible suicide.

Kellermann began his career at Freddie Mac as a financial analyst and auditor in 1992, worked for several years in the company's securities sales and trading unit, and served in a variety of positions in the company's capital markets division. He held an M.S. in finance from George Washington University and a B.S. in political science and accounting from the University of Michigan, according to his biography on the company website. Kellermann was also a volunteer board member of the D.C. Coalition for the Homeless.
__________________________________________________________
http://www.portfolio.com/views/blogs/daily-brief/2009/04/22/freddie-mac-acting-cfo-found-dead?tid=true

Apr 22 2009   8:42AM  EDT
Freddie Mac Acting CFO Found Dead

News this morning that David Kellermann, a longtime Freddie Mac executive who was named acting chief financial officer last year, was found dead at his Virginia home near Washington, DC. Officials believe the 41-year-old man may have committed suicide, according to a report in The Washington Post.

Kellerman was tapped as the caretaker of Freddie Mac's finances after the nation's housing market crashed and the organization--a government sponsored enterprise officially called the Federal Home Loan Mortgage Corporation--was taken over by the federal government last September.

Kellerman, a University of Michigan alumnus, was holding the CFO position while Freddie Mac conducted a search for a permanent replacement.

If authorities rule his death a suicide, he would become the latest casualty in a string of such deaths since the global economy collapsed. For a report on some of the executives who have killed themselves because of financial problems, click here.
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http://www.humanevents.com/article.php?id=31155

GOP to Probe Links Between AIG, Obama, Dodd

by  Connie Hair
03/20/2009

Reports of additional bailout negligence and mismanagement are rocking the Obama administration as lack of oversight has produced one big TARP mess after another, leaving Democrats running for cover.  There were more revelations yesterday of excessive executive bonuses from the mismanaged Fannie Mae and Freddie Mac, companies at the very heart of the current financial meltdown, and an announcement from Democrats in Congress that 13 of the financial firms receiving bailout money from taxpayers owe more than $220 million in unpaid back federal taxes.

In an attempt to add some supervision, Sen. Chuck Grassley (R-Iowa), ranking member of the Senate Committee on Finance, sent letters to Herbert Allison, President and CEO of Fannie Mae, and John Koskinen, interim CEO of Freddie Mac, the two nationalized sub-prime mortgage giants most responsible for the sub-prime meltdown, demanding accountability.  Grassley is asking the executives to account for their retention bonus programs at a time when these entities continue to lose exorbitant sums of money after accepting taxpayer-funded bailouts.  

Fannie Mae reported a loss of $58.7 billion for 2008 and has requested another $15.2 billion from the U.S. Treasury.  Freddie Mac reported a loss of $50.1 billion for 2008, and has requested an additional $30.8 billion from the U.S. Treasury.

According to a report in USA Today, “In securities filings, Freddie said it will pay a retention award of $1.5 million to Executive Vice President Michael Perlman by March 2010. Perlman, whose base salary is $500,000, already collected $300,000 of his bonus. Interim CFO David Kellermann will get an $850,000 bonus, and Senior Vice President Michael May will get $700,000.”
 
“Just as with the extravagant bonus pay at AIG, it’s important to make sure that taxpayer support isn’t enabling unreasonable compensation arrangements that would never have been possible without taxpayer assistance,” Grassley said.

From the Fannie Mae letter:
 
“Because I am concerned with maximizing taxpayers’ investment in Fannie Mae, I am requesting (1) the official documents outlining the Retention Program and any other bonus compensation arrangements; (2) records of any communications related to the formation and implementation of the Retention Program and other bonus compensation arrangements; and (3) any contracts that have been executed in accordance with the Retention Program or other bonus compensations arrangements that would bind Fannie Mae to making bonus payments in the future.”

In yet another problem with Treasury Secretary and TurboTax cheat Timothy Geithner’s structure of bailouts as head of the New York Federal Reserve, it was disclosed Thursday that at least 13 of the 470 financial firms receiving bailout money from taxpayers owe more than $220 million in unpaid federal taxes.  All 470 firms have not yet been vetted.  At the time Geithner was head of the New York Fed and acting as the architect of the bailout structure, he was actively participating in serial tax evasion himself.  Firms applying for bailout funds were merely required to sign paperwork stating they had paid all of their federal taxes, ironically the same honor system that Geithner used to avoid paying his income taxes.

Rep. John Lewis (D-Ga.), chairman of the House subcommittee tasked with bailout oversight, announced the unpaid tax circumstance to reporters but did not reveal the names of these institutions receiving the bailout funds who are tax delinquent, citing that it was illegal for the committee to do so.

“It’s shameful, it’s a disgrace,” Lewis said to reporters.  “If we looked at all 470 recipients, how much would they owe?”

On the AIG bonus scandal front, Republicans yesterday were again warning about the dangers of rushing through Congress massive legislation such as the Democrats did with their “stimulus” bill without giving members of Congress and the public time to actually read the bills.  

House Republican leader John Boehner (R-Ohio) told HUMAN EVENTS at a press conference yesterday, “Five weeks ago, when we were debating the stimulus bill, I was making the point that we had an 1,100 page bill that no one had ever read. Clearly, no one had ever read [it]. The President signed this bill into law, and then the President said he didn’t know what was in it. Obviously, they didn’t read it either.”

I asked about the Republican efforts to subpoena AIG and Geithner records and communications in relation to this scandal, and if there was yet any evidence of a quid pro quo as Democrat Sen. Chris Dodd and then Sen. Barack Obama were the two largest recipients of AIG campaign cash last year.  Boehner told me, “That’s what we’re trying to find out.”

In a HUMAN EVENTS exclusive interview yesterday with House Republican Whip Eric Cantor (R-Va.), we discussed efforts by Republicans to hold accountable those who have been at best negligent in their bailout oversight roles.  “The American people really are beginning to have some buyer’s remorse on what they’ve done,” Cantor said.  “And I also believe that it’s important for this system to have checks and balances.  Clearly over the last several months this administration’s been here and this crowd’s been in charge, there’s been no check and balance.  The way this place has been run, the lack of transparency, they have lacked accountability, and I believe the American people are waking up to that.”

As we watch this daily unfolding of TARP fund mismanagement and negligence, this should serve as a warning to all Americans:  when the Obama administration tells you that they are capable of oversight of the massive programs they propose like nationalized health care, look at this shining example of their ability to oversee the 470 financial institutions that have been handed hundreds of billions of taxpayer bailout dollars.

Connie Hair is a freelance writer, a former speechwriter for Rep. Trent Franks (R-AZ) and a former media and coalitions advisor to the Senate Republican Conference.
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http://www.ft.com/cms/s/0/183e279c-2f36-11de-b52f-00144feabdc0.html?ftcamp=rss

Freddie Mac’s finance chief found dead

By Saskia Scholtes and Simone Baribeau in New York

Published: April 22 2009 13:19 | Last updated: April 22 2009 18:32

David Kellermann, acting chief financial officer of the troubled US mortgage financier Freddie Mac, was found dead early on Wednesday in his suburban Virginia home, police said.

Mr Kellermann’s wife reported an apparent suicide, according to local media accounts. Police said that there was no evidence of foul play.

His death adds to turmoil in the company’s boardroom after Freddie Mac’s government- appointed chief executive, David Moffett, quit last month because of apparent frustration with Freddie’s regulator over its tight grip on the company’s affairs.

Mr Moffett’s temporary replacement is John Koskinen, who had been serving as Freddie Mac’s board chairman. Mr Koskinen said: “We extend our deepest condolences to David’s family and loved ones for this terrible personal tragedy.”

Mr Kellermann, 41, became acting chief financial officer of Freddie Mac last September, after it was placed under conservatorship by the government.

He was Freddie Mac’s fourth chief financial officer in less than six years. Freddie’s board pushed out then CFO Vaughn Clarke amid an accounting scandal in 2003, and his replacement, Martin Baumann, resigned in March 2006.

Freddie Mac is also under investigation by the Securities and Exchange Commission and the US Attorney’s Office for the Eastern District of Virginia, the company disclosed in a recent regulatory filing.

Eric Holder, US attorney-general, said that he had no idea whether Mr Kellermann’s death was related to investigations of the company. “It is obviously tragic but I do not know anything more than what I have read,” he said.

Mr Kellermann had worked for Freddie for more than 16 years, beginning in his mid-twenties as a financial analyst, according to his company profile.

He was responsible for the company’s financial controls, financial reporting, tax, capital oversight and compliance with federal oversight requirements, and oversaw the company’s annual budgeting and financial planning processes.

He had previously served as corporate controller and principal accounting officer.

Tim Geithner, US Treasury secretary, said on Wednesday: “Our ­deepest sympathies are with [Mr Kellerman’s] family and his colleagues at Freddie Mac during this difficult time.”

Additional reporting by Tom Braithwaite in Washington

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http://powermoves.capitaliq.com/index.php/category/companies/freddie-mac/

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Thursday, March 12, 2009
Freddie Mac Announces Executive Changes

Freddie Mac announced that its board of directors had named John A. Koskinen as the company’s interim chief executive officer and Robert F. Glauber as its interim non-executive chairman. Both appointments will be effective upon the resignation of current CEO David M. Moffett, who had previously announced that he would resign from his position as chief executive officer and as a member of the board no later than March 13, 2009. Koskinenhad served as non-executive chairman of Freddie Mac since September 2008. Glauber initially joined the Freddie Mac board of directors in 2006. He is a lecturer at Harvard’s Kennedy School of Government and a visiting professor at the Harvard Law School. Prior to that, he served as chairman and CEO of the National Association of Securities Dealers from 2001 to 2006, after first serving as its CEO and president and a member of its board. Over the years, he has been a lecturer at the Kennedy School, undersecretary of the Treasury for Finance and a professor of finance at the Harvard Business School. Glauber also served as executive director of the task force appointed by President Reagan to report on the 1987 stock market break. He has served on the board of the Federal Reserve Bank of Boston, a number of Dreyfus mutual funds, the Investment Company Institute, and as president of the Boston Economic Club. He also is a director of Moody’s Corporation; a trustee of the International Accounting Standards Committee Foundation; and lead director of XL Capital Ltd. Glauber has been a senior advisor at Peter J. Solomon Co., an investment bank, since November 2006. The company’s board of directors is working with the company’s conservator, the Federal Housing Finance Agency, to appoint a permanent chief executive officer. Following such appointment, the board of directors expects that Koskinen will return to the position of non-executive chairman.-PR Newswire

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Wednesday, March 4, 2009
Freddie Mac Appoints Raymond G. Romano

Freddie Mac appointed Raymond G. Romano as the company’s chief credit officer, a position that is responsible for enterprise wide credit risk management activities. Mr. Romano has served as senior vice president of credit risk oversight since he joined the government-sponsored enterprise, which is now operating in conservator ship, in 2004. In September 2008, he also assumed the role as acting chief credit officer while the company conducted a nationwide search to fill the risk management position. In September of this year, the federal government took control of the company.-Mortgage Servicing News

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Monday, December 29, 2008
Freddie Mac Appoints Raymond G. Romano

Freddie Mac named Raymond G. Romano as the company’s chief credit officer, a position that is responsible for enterprise-wide credit risk management activities.Romano has served as senior vice president of credit risk oversight since he joined the company in 2004. In September 2008, Romano also assumed the role as acting chief credit officer while the company conducted a nationwide search for the position. Romano will report to Freddie Mac CEO David Moffett and will lead the company’s credit risk management efforts including credit policy, counterparty credit risk management, and loss forecasting. Prior to joining Freddie Mac Romano served as senior vice president and chief credit officer and in other executive positions at different financial institutions including North American Mortgage Company, Dime Savings Bank of NY, and with Citicorp’s Investment Bank.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.-PR Newswire

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Friday, October 10, 2008
Freddie Mac Appoints Denny R. Fox

Freddie Mac announced that on October 6, 2008, Denny R. Fox, age 49, vice president, accounting policy and external reporting, was appointed interim principal accounting officer effective immediately. David B. Kellermann, who was appointed as Freddie Mac’s interim chief financial officer on September 24, 2008, served as Freddie Mac’s principal accounting officer prior to the appointment of Mr. Fox. Mr. Fox joined Freddie Mac in November 2004, as vice president, accounting policy.-SEC Form 8k

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Monday, September 29, 2008
Freddie Macc Announces Changes in Management and Organization

Freddie Mac announced changes in its senior management and organization that will enable the company to help stabilize the housing finance system and position it to take advantage of business opportunities in the market over the longer term. The changes are effective immediately. The company’s three business lines–single family credit guarantee, headed by Senior Vice President Donald J. Bisenius; multifamily sourcing, headed by Senior Vice President Michael C. May; and investments and capital markets, headed by Senior Vice President Gary D. Kain–will report directly to Freddie Mac Chief Executive Officer David M. Moffett. This new structure effectively eliminates the need for a chief business officer. As a result, Patricia L. Cook, who had held that position, will be leaving the company. The company also named Senior Vice President and Corporate Controller David Kellermann as acting chief financial officer, reporting directly to Moffett, while it undertakes an external search to fill the position on a permanent basis. Chief Financial Officer Anthony S. (’Buddy’) Piszel is departing the firm. All of the company’s credit management activities will be consolidated under a single new position, chief credit officer, reporting directly to Moffett. Raymond G. Romano, senior vice president, credit risk oversight, will be the acting chief credit officer reporting directly to Moffett while the company conducts an external search.-PR Newswire

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Thursday, September 18, 2008
Freddie Mac Appoints John A. Koskinen

The Federal Housing Finance Agency announced that it had appointed new non-executive chairman at Freddie Mac. John A. Koskinen was appointed Freddie’s chairman. He succeeded Richard Syron, who was ousted as the GSE’s chairman and chief executive officer this month, when the Finance Agency put Freddie into conservatorship. Mr. Koskinen was previously the president of the U.S. Soccer Foundation. Before that he had been a deputy mayor and city administrator of the District of Columbia.-American Banker

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Tuesday, September 9, 2008
Freddie Mac Appoints David M. Moffett

David M. Moffett, who was appointed chief executive of Freddie Mac on September 7, 2008, helped transform U.S. Bancorp from a small Ohio bank into the nation’s sixth biggest lender.  Mr. Moffett, 56, brings a deep knowledge of the banking industry and strong relationships on Wall Street. Mr. Moffett served as U.S. Bancorp’s finance chief for nearly 14 years, overseeing financial reporting, treasury operations and real estate functions, as well as the asset and wealth management group.-The New York Times
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Freddie Mac Acting CFO Got $800,000 In Recent Bonus -NYT


DOW JONES NEWSWIRES

Apr 22, 2009

Freddie Mac (FRE) acting chief financial officer David Kellermann, found dead early Wednesday after an apparent suicide at his northern Virginia home, in recent weeks received about $800,000 in bonus payments from the company, the New York Times reported on its Web site, citing company officials and neighbors. Kellermann, who had been with the company for 16 years and its acting CFO since September, had hired a private security firm after reporters came to his house in Reston, Va., to ask about the bonus payment, according to his neighbors.

Full story at www.nytimes.com/2009/04/23/business/23freddie.html?hp

-Dow Jones Newswires; 201-938-5500

  (END) Dow Jones Newswires
  04-22-091220ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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Freddie Mac Acting CFO Got $800,000 In Recent Bonus -NYT


DOW JONES NEWSWIRES

Apr 22, 2009

Freddie Mac (FRE) acting chief financial officer David Kellermann, found dead early Wednesday after an apparent suicide at his northern Virginia home, in recent weeks received about $800,000 in bonus payments from the company, the New York Times reported on its Web site, citing company officials and neighbors. Kellermann, who had been with the company for 16 years and its acting CFO since September, had hired a private security firm after reporters came to his house in Reston, Va., to ask about the bonus payment, according to his neighbors.

Full story at www.nytimes.com/2009/04/23/business/23freddie.html?hp

-Dow Jones Newswires; 201-938-5500

  (END) Dow Jones Newswires
  04-22-091220ET
  Copyright (c) 2009 Dow Jones & Company, Inc.


The info was released just a month ago:

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Freddie, Fannie to also give executive bonuses
http://www.usatoday.com/money/economy/housing/2009-03-18-fannie-mae-bonuses_N.htm
By Pallavi Gogoi, USA TODAY 3/18/2009


Even as American International Group is under intense fire for the $165 million it paid in bonuses, Fannie Mae (FNM) and Freddie Mac (FRE) have revealed they also are giving top executives retention bonuses. The two mortgage giants have been taken over by the government and posted $108 billion in losses last year stemming from mortgage defaults.

In securities filings, Freddie said it will pay a retention award of $1.5 million to Executive Vice President Michael Perlman by March 2010. Perlman, whose base salary is $500,000, already collected $300,000 of his bonus. Interim CFO David Kellermann will get an $850,000 bonus, and Senior Vice President Michael May will get $700,000. "It is insulting to the average everyday worker who's lost a job and is collecting unemployment to see these kinds of payments," says David DeBoskey, assistant professor at Charles W. Lamden School of Accountancy. DeBoskey says the payments are meant to prevent executives from abandoning a company, but because similar jobs are tough to find now, retention bonuses are hard to justify.

Meanwhile, Fannie Mae will pay a total of $871,000 to Michael Williams, its chief operating officer, whose base annual salary is $676,000. Three other executives will get bonuses ranging from $670,000 to $737,000. Big bonuses also are coming to light at other companies that received some form of federal help. Wells Fargo, which bought the almost-failed Wachovia, will pay a bonus of $8 million to Senior Vice President David Carroll. Carroll, a former Wachovia executive, will get that on top of salary and incentives totaling $20.7 million. And on Tuesday, Sen. Robert Menendez, D-N.J., sent a letter to Treasury Secretary Timothy Geithner, urging him to stop Morgan Stanley from paying $3 billion in retention bonuses to its brokers as it merges its brokerage business with Citigroup.

Wednesday, a New York Supreme Court judge ruled that state Attorney General Andrew Cuomo could reveal the names of the top 200 executives who received 2008 bonuses at Merrill Lynch. Merrill and parent Bank of America had been fighting to keep the names confidential. Rep. Barney Frank, D-Mass., also has asked AIG to provide the names of all recipients of its bonuses. "The political forces behind these demands suggest that they want to embarrass these executives into giving up their bonuses," says Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware.
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Get Ready to Reveal Credit-Swap Risks
FASB voted last week to require banks and other companies that sell credit derivatives to disclose more information to investors starting at the end of this calendar year.
http://www.cfo.com/printable/article.cfm/11910131
Marie Leone, CFO.com | US August 8, 2008


Accounting rulemakers voted last week to keep the pressure on banks and other institutions that sell credit derivatives and push forward with a disclosure requirement aimed at helping investors get a better read on the financial instruments. In a 3-to-2 vote, the Financial Accounting Standards Board decided to stick to its original plan and make the disclosure provision effective for fiscal years ending after November 15, 2008.

Expressing urgency about putting the new date in place, the board rejected the recommendation of its staff, as well as suggestions from many constituents, to delay the provision's effective date for a few months.

For companies with calendar year–ends, the decision leaves them with about four months to digest and comply with the revisions made to FAS 133 and FIN 45, two rules that address how companies account for and disclose information about hedging activity. The rule voted on last week is more specific than the disclosure requirements within either of the existing rules, as it focuses on purveyors of credit derivatives. Such instruments include credit-default swaps, credit-spread options, and credit-index products. The reason for the laser-focused amendment is the explosive growth in credit-default-swap contracts and the part they played in the current credit crisis.

By the end of 2007, the notional value of credit-default-swap contracts rose to $62.2 trillion, up from $34.4 trillion in 2006 and $17.1 trillion the year before, according to the International Swaps and Derivatives Association. Credit-default swaps are bought by bondholders to protect against default, meaning that the bond issuer doesn't make its coupon payments. If the bond issuer defaults on the payments, the seller of the swap pays the holder the face value of the bond.

In the wake of the current credit crisis, however, bond defaults rose precipitously, more than anyone — including default swap sellers — expected. As a result, some sellers were left with obligations that depleted or severely hampered their cash positions and weakened their credit ratings. According to FASB, some investors were concerned that the existing disclosure requirements in FAS 133 and FIN 45 didn't "adequately address the adverse effects" of changes in a seller's credit risk, financial strength and performance, and cash flow.

So on May 30, FASB issued a draft proposal addressing the concerns of financial-statement users. Specifically, the amendment says that for every derivative — or group of similar derivatives — the seller must disclose the nature of the instrument (term, reasons for entering into the contract, and current status of the payment/performance risk); the maximum potential amount of future payments the seller is required to make under the contract terms; the fair value of the derivative; and the nature of any recourse provisions that would allow the seller to recover the amount it pays out — such as collateral pledged or assets held by third parties that the seller has the right to liquidate.

The new disclosure amendment addresses only a small piece of the daunting 800-page FAS 133, which is considered to be one of the most complex rules of all U.S. generally accepted accounting standards. The bulk of the changes to FAS 133, which reportedly will simplify hedge accounting, will be discussed at a separate FASB meeting, following the August 15 comment period deadline.

In addition to voting on the effective date and disclosure requirements, FASB also decided to limit the scope of the project to credit derivatives rather than all financial instruments, which would have slowed the board down. Board members agreed that they were keen on keeping the derivative project on a fast track, mainly because of the "near-term need" to address issues related to the credit crisis. The decision to narrow the scope is a departure from international financial reporting standards: in August 2005, the International Accounting Standards board issued IFRS 7, a disclosure rule that comprises all financial instruments, not just derivatives.

Goldman Sachs took issue with FASB's rifle-like approach. In a comment letter, Matthew Schroeder, managing director of accounting policy at the investment bank, wrote that FASB's approach of creating disclosure requirements "in response to targeted and pressing issues" was not effective. He continued: "While we appreciate the importance of addressing the issue at-hand, we believe that rule-making in this way adds to the complexity of current disclosure guidelines." Schroeder recommended that FASB develop a "single" framework for financial-instrument disclosures similar to IFRS 7.

Most of the authors of the 16 letters submitted to FASB agreed that additional disclosures are needed, but asked for more time to implement the changes. One exception was Huy Tran, managing director of accounting policy at credit insurer MBIA, who wrote that, since the company already reports some of the items required by the proposed amendment, it would not have problems complying by December 31, 2008.

Meanwhile, Freddie Mac's principal accounting officer, David Kellermann, wrote that by complying with current rules, the mortgage lender discloses the risk characteristics of the underlying contract assets, the performance statistics, and delinquency rates of its derivatives. As a result, the proposed changes would be "redundant."

FASB board members Leslie Seidman and George Batavick sided with the companies that called for a delay in the effective date. Seidman noted that changing the date to fiscal years that begin after November 15, 2008, would mean that the amendment would coincide with the effective date of the revised FAS 161, the much broader hedge-accounting disclosure rule.

Furthermore, Seidman pointed out that by accelerating the compliance deadline, FASB would be adding to an already long list of year-end rulemaking duties that companies have to deal with — including fast-approaching comment deadlines for drafts on accounting for transfers and servicing of financial assets (FAS 140) and consolidating variable-interest entities (FIN 46R), as well as implementation of standards for making exchanges of nonmonetary assets (FAS 153) and hedge-accounting disclosures (FAS 161). That burden, she thought, was not "reasonable."

While conceding that the rule delay wouldn't amount to more than pushing the effective date to the following quarter, FASB member Thomas Linsmeier was adamant about acting sooner rather than later. "In this market, with the credit crisis, two or three months may be a big deal" in terms of investor disclosures, he said. "The demands of investors [for this information] are reasonable," added FASB chairman Robert Herz.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Freddie Mac Insider Trading
http://finance.yahoo.com/q/it?s=FRE

29-Mar-09   KELLERMANN DAVID BRIAN
Officer   472   Direct   Disposition (Non Open Market) at $0.80 per share.   $377

7-Mar-09   KELLERMANN DAVID BRIAN
Officer   1,955   Direct   Disposition (Non Open Market) at $0.36 per share.   $703

3-Mar-09   KELLERMANN DAVID BRIAN
Officer   399   Direct   Disposition (Non Open Market) at $0.39 per share.   $155

7-Dec-08   KELLERMANN DAVID BRIAN
Officer   823   Direct   Disposition (Non Open Market) at $0.86 per share.   $707

I have no idea why this is tracked if it is so small

All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately