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Freddie Mac finance chief found dead

Posted by msrb on April 22, 2009

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David Kellermann Bites the Dust

David Kellermann, the acting chief financial officer of Freddie Mac (the troubled US mortgage giant), was reportedly found dead in his upmarket Virginia home.

kellermann
David Kellermann. Source and date of image not specified by sender. Image may be subject to copyright.

The body of Kellermann, 41, was discovered before dawn in his home in Vienna, Fairfax County, Virginia (his palatial home at Hunter Mill Estates home is 13 miles  west of Washington DC. ), police said. They did not elaborate on the cause of death.

However, CNN said it had confirmed he had killed himself. It’s not known where they got their information from because police did not provide any details (the result of the forensics test take a few days). And given that CNN is one of the least trustworthy “news” networks in the world, independent confirmation of cause of death should be sought.

Freddie Mac, whose full name is the Federal Home Loan Mortgage Corporation, is one of the two major US home loan corporations that were  effectively taken over by the government in  September after massive financial irregularities were discovered. Freddic Mac owns or guarantees about 13 million home loans.

Before his promotion, Kellerman worked as senior vice president, corporate controller and principal accounting officer. He joined Freddie Mac in 1992.

He became acting chief financial officer in September 2008  after Anthony “Buddy” Piszel resigned from the position. Freddie Mac’s CEO David Moffett resigned in March 2009. [Perhaps he, too,  should make a similar consideration.]

Any relationship, or association between the deceased and Bernard Lawrence “Bernie” Madoff would be purely coincidental.

The big question is, why would he commit suicide, Madoff didn’t!

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One Response to “Freddie Mac finance chief found dead”

  1. msrb said

    Lewis testified that U.S. urged silence on Merrill deal: report

    NEW YORK (Reuters) – Bank of America Corp CEO Kenneth Lewis testified under oath that Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson pressured him to keep quiet about losses at Merrill Lynch & Co, which the bank was buying, the Wall Street Journal reported.

    Testifying before New York Attorney General Andrew Cuomo in February, Lewis said “it wasn’t up to me” to reveal Merrill’s fourth-quarter losses as they were becoming apparent in December, the newspaper said, citing a deposition transcript.

    Shareholders of Merrill and Bank of America voted to approve the merger on December 5, and the transaction closed on January 1. Bank of America subsequently reported that Merrill lost $15.84 billion in the fourth quarter.

    At Bank of America’s April 29 annual meeting, shareholders will vote on whether to force Lewis to step down as chairman of the largest U.S. bank or leave its board, because of Merrill and a falling share price.

    Many critics also want Lewis to give up the chief executive job, which he has held since 2001.

    The Journal said Lewis testified that Bernanke and Paulson told him the merger needed to go through and that any failure would “impose a big risk to the financial system” of the United States.

    Cuomo’s office is expected to release the deposition transcript to federal regulators and overseers of bank bailout money today, the newspaper said.

    Bank of America shares have lost three-fourths of their value since the Merrill purchase was announced September 15.

    Merrill’s losses triggered a federal bailout of Bank of America, including $20 billion of new capital, in January.

    According to the Journal, a person in government familiar with Bernanke’s talks with Lewis said the Fed chairman did not offer advice on disclosure, suggesting instead that Lewis consult his own counsel.

    The newspaper quoted Paulson’s spokeswoman as saying Paulson repeatedly told Lewis that “the U.S. government was committed to ensuring that no systemically important financial institution would fail.”

    Bank of America did not immediately respond to a request for comment. A spokesman told the newspaper that the bank “had no legal obligation” to disclose its talks with the government, and that disclosure “likely would have severely disrupted the global financial markets and damaged the bank.”

    (Reporting by Ajay Kamalakaran in Bangalore and Jonathan Stempel in New York; Editing by Muralikumar Anantharaman and John Wallace)
    Copyright Reuters.
    http://www.reuters.com/article/newsOne/idUSTRE53M14820090423

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