Does this guy look like a suicide candidate to you?
April 22 (Bloomberg) — Freddie Mac Acting Chief Financial Officer David Kellermann, 41, was found dead early today in the basement of his home in a Washington suburb, police said. The death is under investigation, Fairfax County, Virginia, Police Officer Shelley Broderick said. (Source.)
David Kellermann had been with Freddie Mac for 16 years and was responsible for Freddie Mac’s financial reporting, capital oversight, and compliance with federal oversight requirements, and also oversaw the annual budgeting and financial planning. (Source.)
A year ago David Kellermann was Freddie Mac’s Controller and helped disclose accounting fraud inside of the now failing Freddie Mac. His honest bookkeeping resulted in the firing of the CEOs and CFOs of Freddie Mac and Fannie Mae–and his promotion to Acting CFO at Freddie Mac. How many enemies did he make in that process?
Did he commit suicide because of money problems? Doubtful. David Kellermann had a wife and 6-year-old daughter and was to be paid a $850,000 bonus. Did he commit suicide due to pressures at work? Doubtful. He was “acting” CFO and could walk away at any time–he didn’t create the pending failure of Freddie Mac.
Freddie Mac holds a $2.247 trillion mortgage portfolio and defaults on loans are accelerating. (Source.) Freddie Mac mortgage delinquencies among the most creditworthy homeowners rose 50 percent last month alone. (Source.) Just before David Kellermann’s suicide he had arguments with the US Government regulators about financial disclosures:
Mr. Kellermann was also involved in recent tense conversations with federal regulators over its public disclosures. Freddie Mac executives wanted to emphasize to investors that the company was being run for the benefit of the government, rather than shareholders. The Federal Housing Finance Authority, had reportedly pushed to play down that language. Freddie Mac ultimately reported that it made changes to business practices to help the government that “have increased our expenses or caused us to forgo revenue opportunities.” (Source.)
In an SEC filing last month, Freddie Mac said the Obama plan was likely to have a “significant adverse effect on our financial results or condition,” notably on the valuation of guarantees the company has made on millions of mortgages. Certain accounting rules could force the company to take a pretax charge against earnings of about $30 billion as a result of the Obama loan-modification plan, Freddie Mac said in the filing. (Source.)
How happy was the government about these disclosures?
If suicide was his final answer, then what drove him to it?
What message does his death send to other CFOs?
- Freddie Mac Is The Least Reputable Company In The Nation (businessinsider.com)
- Police Found Freddie Mac CFO Dead by Hanging (ABC News)