Freddie Mac CEO to Step Down

March 2, 2009 No Comments »


How’s this for a shot of confidence.  David Moffett, who served as the CEO of Freddie Mac after it went in conservatorship just months ago, has announced his resignation.

He will leave his post as chief of the company and as a member of the board by no later than March 13, but indicated that he wants a future role in the financial services sector (hmm).

“I have enjoyed my time as CEO of Freddie Mac and I wish all the great employees the very best in the days to come,” Moffett said in his letter of resignation, posted on the Freddie Mac website.

“We are very sorry to see David go,” said John Koskinen, chairman of the board.  “He made valuable contributions to Freddie Mac as the company transitioned into conservatorship.”

“We expect to name an interim CEO before March 13 to assume David’s responsibilities once he leaves.” He added, “The board remains fully committed to ensuring the company continues its critical role in supporting the housing finance system during this difficult economic period.”

The mortgage financier also noted that it expects to draw another $30 billion to $35 billion under the Senior Preferred Stock Purchase Agreement between itself and Treasury to keep operations afloat.

Both Fannie Mae and Freddie Mac were taken over back in September, resulting in the ousting of former CEOs Daniel Mudd and Dick Syron.

Last week, Freddie Mac revealed it was investigating itself over past lobbying efforts that may have led to the mortgage financier’s epic failure.

Both government-sponsored entities have been accused of ignoring obvious risk to stay relevant in what was an increasingly risky mortgage market.

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