Troubled Freddie Mac exec was “straight arrow”

James Lockhart, head of the Federal Housing Finance Agency
James Lockhart, head of the Federal Housing Finance Agency

The chief financial officer at Freddie Mac who died in an apparent suicide was a capable executive who had no involvement in any improper accounting, according to Freddie Mac’s federal regulator.

“David (Kellermann) was a very conscientious and hard-working person and took, unfortunately, too much onto himself,” James Lockhart, the director of the Federal Housing Finance Agency, told the Reuters Global Financial Regulation Summit in Washington.

Kellermann was found dead on April 22 in the basement of his Virginia home after having hung himself, local police sources said. Some news reports at the time tied Kellermann’s death to ongoing federal investigations into Freddie Mac’s accounting.

“You know, one of the things I find unfortunate? Some of the speculation about accounting issues at Freddie. They are very rigorous,” Lockhart said. He described Kellermann as a “straight arrow” whose reputation was above reproach and said that the failings at Freddie Mac were widely shared.

Last September, federal regulators took over Fannie Mae and Freddie Mac as the the companies losses on the housing market mounted.

“Yes, we’re seeing significant losses but from my standpoint and my chief accountant’s standpoint, from the two auditing firms that were auditing them, from a loss reserving standpoint, they were following” proper accounting standards, Lockhart said.

8 thoughts on “Troubled Freddie Mac exec was “straight arrow””

  1. When will Barney Frank, Chris Dodd and the rest of the hard-core leftist / statists in Congress stand scrutiny for their key roles in the mortgage and credit fiasco that is taking place? These people get more than a pass from the vast majority of the media and entertainment industries. They get a full-fledged effort on their behalf to continue to assault the very people who called for reform… real “conservatives”. This is insidious. Fannie and Freddie are and were conceived as government toyboxes and giveaway enterprises….FOR the likes of Barney Frank to populate with his friends and divvy up resources to HIS liking. Now that things have reached their inevitable conclusion (insolvency), we turn to HIM to fix it? And he goes on trashing the other side, whom he demonized when they sought solutions BEFORE insolvency became inevitable. This is the world we live in today, folks. Unreal.

  2. I guess the majority of Americans have been dumbed down enough that things like having Barney Frank, one of the major players in this financial fiasco, put in charge to ‘fix’ it doesn’t sound all that outrageous. This is also why they can get away with putting a tax cheat in charge of the IRS.

  3. Hey DBerriman you numbskull, they’ll get prosecuted about the same time that Phil Gramm and the architects of the Enron loophole that led to deregulated shadow markets, such as that used by Enron and later to trade mortgage derivatives and credit default swaps, are prosecuted. Is that the “reform” side of the party you hold as the beacon of judgment? Give me a break.

  4. I agree with you DBerriman. The news media is about as worthless as you can get. They’re a super biased bunch of people that would rather report on the things that sell advertizing space instead of what’s important to the people. You’ll hear about what Brintey Spears got for her birthday before you hear about the Dems pressuring our financial system into investing in these bad loans. I’m glad too see the newspapers and other news organizations in financial trouble. They’re as one sided as it gets. Who gives a damn about freedom of the press when they don’t report the important truth to the people.

    Kellerman died due to unfortunate circumstances, I offer condolences to his family and friends. The media needs to quit harping on the story. Let’s hear about the Clintons pressuring Fannie and Freddie into buying the mortgages of people who could not afford them. Let’s hear about who pushed through the affordable housing act that started this mess.

    You schmucks need to start doing your jobs.

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