Mar 03 2009
Mortgage Giant Freddie Mac CEO Resigns
David Moffet, Chief Executive Officer of Freddie Mac, is resigning after only six months on the job. Moffet, the former vice chairman of US Bancorp, took control of Freddie Mac when the Federal Government seized control of it in September 2008. Moffet has been the fourth Freddie Mac CEO in six years.
Freddie Mac has continued to have huge losses. The company has already gone through $14 Billion in government aid and plans to request an additional $35 Billion.
It will be difficult to find a new Chief Executive for the company. The new CEO will need to be approved by the Treasury Department and will be severely restricted by federal regulators. Most qualified candidates would not be interested in the position because their ability to manage will be handcuffed by directives from the government.
