Freddie Mac CEO Resigns Six Months After Stepping Into Role
- Mar 02, 2009
By Anuradha Kher, Online News EditorMcLean, Va.–Freddie Mac chief executive officer, David Moffett is resigning from the agency and will step down by March 13. The board of directors is now working with the Federal Housing Finance Agency (FHFA) to appoint a successor to Moffett.Moffett’s resignation comes merely six months after the government chose him to lead the second-largest U.S. mortgage finance company amid the housing slump. Prior to that, he served as vice chairman and chief financial officer of U.S. Bancorp.The stated reason for Moffett’s resignation is 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.”John Koskinen, chairman of the board, says, “We are very sorry to see Moffett go. He made valuable contributions to Freddie Mac as the company transitioned into conservatorship.” He adds, “We expect to name an interim CEO before March 13 to assume Moffett’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.”Freddie Mac, which has accessed nearly $14 billion in government funds, said it may need up to $35 billion more when it reports its financial results in the next few weeks. President Barack Obama announced last month that Fannie Mae and Freddie Mac will be used to provide access to low-cost refinancing for borrowers with little or no equity in their homes.