Freddie Mac CFO found dead, may be suicide

[Crossroads Inc.]

Sad if its true, a bit disconcerting that this crisis is immense people actually may be killing themselves over it.
CNN

VIENNA, Virginia (CNN) -- The acting chief financial officer of mortgage finance giant Freddie Mac was found dead Wednesday morning at his home, police said.


David Kellermann, acting CFO of Freddie Mac, was found dead on Wednesday, police said.
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David Kellermann was found dead of an apparent hanging, a source familiar with the investigation told CNN.

There were no signs of foul play when officers arrived at the home in Vienna shortly before 5 a.m., said Lucy Caldwell, a spokeswoman for police in Fairfax County, Virginia. She said the death "may have been an apparent suicide."

Freddie Mac has been immersed in financial problems since last year, when the government took it over in the midst of the escalating subprime-mortgage loan crisis. Federal prosecutors in New York and Virginia have been investigating it, as has the Securities and Exchange Commission, according to a March 11 company filing.

A second Fairfax County police spokesman, Eddie Azcarate, said Kellermann's body was found in the basement.

"The exact cause of death ... we're going to wait for the medical examiner," he said. Police were called by someone inside the home, he said, but he didn't know who made the report.

Family members remained in the home, and several visitors went inside.

Neighbors indicated there was no sign that Kellermann had problems.

"They were very friendly with all the young families in the neighborhood ... terrific people," said neighbor Paul Unger. "We saw him when he was out working in the yard. ... We didn't spend a lot of time together."

"We're beyond shocked," he said. "He was a great family guy with a beautiful young child."

They had the most decorated home at Christmas, Unger added. "I cannot imagine what has happened. ... This is a nightmare."

"I asked the policeman what was going on and he told me. I was stunned, silent, shed tears. I feel terrible," Unger said.

"This is a solid, salt-of-earth kind of family ... and I just cannot imagine what would have driven him to it."

Another neighbor said the family was very "community-oriented," and liked hosting parties at their house.

"We're very, very upset right now," said the woman, whose daughter baby-sat for the Kellermanns' 5-year-old daughter. "This is just too much for us."

"They were a very happy, happy couple. So it was a shock when we came upon it."

Kellermann, 41, was a man "of great talents," Freddie Mac's interim CEO, John Koskinen, said in a written statement.

"He dedicated those talents to Freddie Mac for more than 16 years, serving in many business and finance capacities before recently taking the reins as acting chief financial officer.

"His extraordinary work ethic and integrity inspired all who worked with him. But he will be most remembered for his affability, his personal warmth, his sense of humor and his quick wit."

Treasury Secretary Tim Geithner offered his condolences in a written statement: "On behalf of the Treasury family, we are deeply saddened by the news this morning of David Kellermann's death. Our deepest sympathies are with his family and his colleagues at Freddie Mac during this difficult time."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. It supports communities across the nation by providing mortgage capital to lenders.

Kellermann, who served as a senior vice president in addition to acting CFO, was named to those posts in September. He was responsible for the company's financial controls. This included overseeing financial reporting, compliance with tax requirements and regulations, and annual budgeting and financial planning.

Before assuming his current posts, Kellermann was corporate controller and principal accounting officer.

According to the March 11 company filing, Freddie Mac was subpoenaed for documents relating to accounting, disclosure and corporate governance matters in September, October, January and February. The filing also says that SEC staff was interviewing company employees.

The government took over Freddie Mac last year. In September, it and Fannie Mae were placed under conservatorship by their regulator, the Federal Housing Finance Agency.

Both companies back mortgages held by private homeowners, and have received massive cash infusions from the government to keep them afloat.

Kellermann held a master's degree in finance from George Washington University and a bachelor's in political science and accounting from the University of Michigan. He had served as a volunteer board member of the District of Columbia Coalition for the Homeless.

"We at [the Federal Housing Finance Agency] are very saddened by the death of David Kellermann," the agency said in a written statement. "As the acting chief financial officer of Freddie Mac during particularly challenging times, David was an inspiration to his staff and many others who were privileged to work with him."

[Solauren]

I wonder if this will be the 'offical start' of business related suicides that will mirror the original Stock Market Crash.

This could get really, really, really messy.

[Coyote]

I have little sympathy, except for their families.

Either the cowards are taking the easy way out, or, I have to ask 'where was your tortured conscience when you were fucking this country into the ground?'

At least we won't have to build as many guillotines.

[Solauren]

I have little sympathy, except for their families.

Either the cowards are taking the easy way out, or, I have to ask 'where was your tortured conscience when you were fucking this country into the ground?'

At least we won't have to build as many guillotines.

Why bother with guillotines? There's plenty of rope.

[Admiral Drason]

I love how his neighbors are all so shocked that they have no idea what would possibly drive the guy to kill himself even though it is sooooooo self evident.

[Raw Shark]

I love how his neighbors are all so shocked that they have no idea what would possibly drive the guy to kill himself even though it is sooooooo self evident.

It's probably a bit easier for us to publicly speculate along the lines of "Fuckup took the easy way out," without having to look his wife and kid in the eye afterward.

[General Zod]

I love how his neighbors are all so shocked that they have no idea what would possibly drive the guy to kill himself even though it is sooooooo self evident.

It's self-evident? Really. Then perhaps you can point out exactly where in the article it says the cause of death was that the rest of us aren't seeing?

[Mr Bean]

It's self-evident? Really. Then perhaps you can point out exactly where in the article it says the cause of death was that the rest of us aren't seeing?

*Points at the Economy*
*Hands Zod a Newspaper with the economy section marked*
Those of us who've been paying attention or have a tiny bit of deductive reasoning might grasp the fact this fellow had fucked over everyone because of how he had not stopped or called out the gambling his company was doing(And in fact aided in said gambling)

And we might further speculate that he was aware of this fact and his behavior mirrors that of around half a dozen other financial sector guru's who lost a shit ton of money(Their's and other people) and then took their own life later on. And not in fact be surprised. If this was a suicide then it should not be a fucking surprise, his life was not going well and anyone who watched any news and knew where he worked would grasp at once a likely reason for said suicide.

But you know what? Lets be fair maybe he killed himself because his local newspaper was going out of business or because his toast was not right that morning, who knows it could be one of a dozen reasons. Prehaps he did not commit suicide at all, in which case we'd have a good reason to guess why someone offed him(Two good reasons, family then business)

A man like him, at his position in life offing himself is not surprising

[General Zod]

*Points at the Economy*
*Hands Zod a Newspaper with the economy section marked*
Those of us who've been paying attention or have a tiny bit of deductive reasoning might grasp the fact this fellow had fucked over everyone because of how he had not stopped or called out the gambling his company was doing(And in fact aided in said gambling)

And we might further speculate that he was aware of this fact and his behavior mirrors that of around half a dozen other financial sector guru's who lost a shit ton of money(Their's and other people) and then took their own life later on. And not in fact be surprised. If this was a suicide then it should not be a fucking surprise, his life was not going well and anyone who watched any news and knew where he worked would grasp at once a likely reason for said suicide.

But you know what? Lets be fair maybe he killed himself because his local newspaper was going out of business or because his toast was not right that morning, who knows it could be one of a dozen reasons. Prehaps he did not commit suicide at all, in which case we'd have a good reason to guess why someone offed him(Two good reasons, family then business)

A man like him, at his position in life offing himself is not surprising

Sure, it's a possibility, but it's hardly "self-evident" simply because we don't know how he died. For all we know it was an accidental overdose because he was on meds and he made a mistake in combinations and amounts. I don't know about you but I'd prefer to wait for the autopsy report to come in before rushing full-steam ahead with the mockery so I don't look like a jackass if it turns out I was wrong.

[Seggybop]

Sure, it's a possibility, but it's hardly "self-evident" simply because we don't know how he died. For all we know it was an accidental overdose because he was on meds and he made a mistake in combinations and amounts. I don't know about you but I'd prefer to wait for the autopsy report to come in before rushing full-steam ahead with the mockery so I don't look like a jackass if it turns out I was wrong.

David Kellermann was found dead of an apparent hanging, a source familiar with the investigation told CNN.

Maybe that's mistaken, but it seems reliable enough to go on for now.

Anyway, I recall hearing this guy's name a lot, but what was his role prior to being interim CFO? Was he in a position where he would have directly contributed to those horrid decisions, or was he in a separate area before his last appointment?

[General Zod]

David Kellermann was found dead of an apparent hanging, a source familiar with the investigation told CNN.

Maybe that's mistaken, but it seems reliable enough to go on for now.

Huh. Not sure how I missed that part, the bit about where they were waiting for the coroner to make the call is what made me question the suicide angle.

[Mr Bean]

Huh. Not sure how I missed that part, the bit about where they were waiting for the coroner to make the call is what made me question the suicide angle.

Either way the point stands Zod, either it was a suicide and he had good reasons(He thought anyway) or it was murder and we have two good reasons(Family or Economy related)

[aerius]

Anyway, I recall hearing this guy's name a lot, but what was his role prior to being interim CFO? Was he in a position where he would have directly contributed to those horrid decisions, or was he in a separate area before his last appointment?

http://www.freddiemac.com/bios/exec/kellermann.html

David Kellermann was named acting chief financial officer in September 2008. Kellermann is a member of the company's leadership team and reports directly to CEO David M. Moffett.

As acting chief financial officer, Kellermann is responsible for the company's financial controls, financial reporting, tax, capital oversight, and compliance with the requirements of Sarbanes-Oxley. He also oversees the company's annual budgeting and financial planning processes.

Prior to this role, he served as senior vice president, corporate controller and principal accounting officer. In this position, his primary responsibility was to support the business with the production of timely, accurate, and well-controlled GAAP, fair value and segment earnings financial statements and external disclosures.

Before that, Kellermann served as the senior vice president and business area controller. As business area controller, he led the organization responsible for all accounting and finance for Freddie Mac’s lines of business.

Kellermann has been with Freddie Mac for more than 16 years. He began as a financial analyst/auditor in 1992, worked for several years in the company's securities sales and trading unit, and has served in a variety of positions in the company's capital markets division, most recently serving as vice president strategy execution and integration and the Investments and Capital Markets division controller.

He may not have been part of the gang which made all those dumbass deals, but in his position he would've known about them and should have done something about it.

[Broomstick]

I wonder if this will be the 'offical start' of business related suicides that will mirror the original Stock Market Crash.

What do you mean "start"? There have already been multiple suicides over financial issues this year, and many of them have been murder-suicides where the guy took out his whole family. Look here. That's just the most recent.

If the CFO of Freddie Mac did kill himself at least he didn't take his family with him.