Freddie Mac CEO Calls it Quits
Freddie Mac ($0.00 0%) announced Monday morning that its chief executive officer, David Moffett, has notified the chairman of the board of directors of his resignation. Moffett was named to the position just six months ago, as the government placed the mortgage giant into conservatorship.
Moffett indicated, according to a statement by Freddie Mac, that he wants to return to a role in the financial services sector. In his letter of resignation, he said, "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 worked in the financial services industry from 1993 to 2007 as vice chairman and chief financial officer of U.S. Bancorp. Prior to 1993, he worked at Security Pacific Corp. and BankAmerica Corp.
John Koskinen, chairman of the board, said the company expects to name an interim CEO before March 13, the date on which Moffett's resignation will be effective. John Lockhart, director of the Federal Housing Finance Agency, the company's regulator, said he would work closely with Freddie Mac in order to guarantee a smooth transition in leadership.
Management continues to estimate that FHFA, in its capacity as conservator of Freddie Mac, will submit a request to Treasury to draw an additional amount of approximately $30 billion to $35 billion under the Senior Preferred Stock Purchase Agreement between Freddie Mac and the Treasury.
Write to Kelly Curran at firstname.lastname@example.org.
Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.
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