Freddie Mac CEO to resign

Newly-appointed chief David Moffett says he will leave by March 13. Successor is yet to be named.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Freddie Mac's chief executive, installed last year after the government took over the troubled mortgage finance company, is resigning, the company and its regulator said Monday.

David Moffett will step down by March 13. Freddie Mac (FRE, Fortune 500) said it would announce a successor by then.

Moffett said that he planned to return to the financial services sector. He served as chief financial officer of U.S. Bancorp from 1993 until 2007.

"We are very sorry to see David go," Freddie Chairman John Koskinen said in a statement. "He made valuable contributions to Freddie Mac as the company transitioned into conservatorship."

Moffett replaced Richard Syron as Freddie CEO in September, when Freddie and Fannie Mae (FNM, Fortune 500) were placed under conservatorship by its regulator, the Federal Housing Finance Agency. Herb Allison, former CEO of pension provider TIAA-CREF, replaced Daniel Mudd as CEO of Fannie Mae.

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

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 coming weeks.

According to Freddie Mac, Moffett was hired "to provide leadership for the company during one of the toughest housing markets in decades" and to work with the FHFA in bringing stability to the housing market.

Back in November, Freddie Mac reported a third-quarter loss of $25 billion, or $19.44 per share. In the next few weeks, the company is expected to report a fourth-quarter loss of $10.27 per share, according to a consensus of analyst opinion compiled by Thomson Reuters.

Fannie Mae reported a fourth-quarter loss of $25.2 billion, or $4.47 per share, its sixth straight quarter of losses.

President Obama announced last month that Fannie and Freddie will be used to provide access to low-cost refinancing for borrowers with little or no equity in their home. The Obama administration intends to help five million home owners avoid foreclosure through this plan.

Talkback: Are you living on an your unemployment check? How are you making ends meet? What bills are you paying - and which ones are sliding? Email your story to realstories@cnnmoney.com and you could be part of an upcoming article. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
These 10 food trends could dominate 2015 So long, kale. Here's what's expected to shake up the food industry next year. More
Beyond Russia: Geopolitical hot spots in 2015 Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More
20 antique guns that fetched big bucks Morphy Auctions in Pennsylvania put nearly 1,000 old guns on the block. Here are just a few. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.