David Kellermann

Freddie Mac CFO David Kellerman, apparent suicide

By ericdondero on | From libertarianrepublican.blogspot.com

Under Fire for accepting large taxpayer-subsidized Bonus

The Nation's Capitol is waking up to a shocking suicide. A key figure in the Federally-backed mortgage lending giant Freddie Mac, is dead of an apparent suicide.

WUSA Radio via The Business Insider is reporting the following:

David Kellermann, Acting Chief Financial Officer and Senior Vice President of Freddie Mac, was found dead this morning.

Fairfax County Police officials tell 9NEWS NOW they responded to his home around 5 a.m. after his wife alerted them to his suicide.

Kellermann was 41 years old.

According to Freddie Mac's website, Kellerman was with Freddie Mac for more than 16 years and named Acting Chief Financial Officer in September.

Kellerman had been under fire for financial irregularities at the home lending giant. Additionally, he has been criticized for taking a large bonus, while the Feds were injecting Mac with $ billions in bail-outs.

Obama administration probe: Senate Investigators looking into gross "negligence and mismanagement" on Freddie and Fannie

From Human Events, March 20:

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.

At a Senate committee hearing over the issue, that included testimony from Kellerman, Iowa Senator Charles Grassley remarked:

“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.”

According to various sources, Freddie Mac is in much deeper financial trouble than is being portrayed publicly, and was even preparing to lobby for a second round of bail-out money. From the London Mail On-Line:

Freddie Mac, and peer Fannie Mae, had to be rescued by Washington in a huge bailout after clocking up huge losses in the sub-prime crisis.

The nationalisation of the two groups, which provide funds for mortgage companies, underlined the depth of the crisis in the U.S. housing market. In March, the company revealed a loss of $50.1billion for 2008 and said it planned to ask the government for even more aid.

Note - See related story from LR from Saturday: "National Fair Housing Authority targets Whites as , dull, racist in Fed-subsidized radio ads."