Successor to be named by March 13
David Moffett served as vice president of U.S. Bancorp from 1993 to 2007.
Only six months after being appointed CEO of Freddie Mac, David Moffett says he will step down from his position.
Moffett was placed in the chief executive position in September, after the government took over the flailing mortgage finance company. Moffett says he will resign before March 13, and the company’s regulator will name a successor before then.
Not a good sign
There are few details available about why Moffett has chosen to leave his post. News reports say only that he wants to return to the financial services industry. The company has said it will appoint a new head before Moffett leaves, but some analysts still say his departure is a bad sign.
“Whatever the reason Mr. Moffett has determined to leave, the abrupt departure with no replacement in hand is a negative indicator for the company,” said Jim Vogel, a strategist at FTN Financial Capital Markets in Memphis, Tennessee.
Sad to see him go
Based on comments from others within the company, it’s pretty clear that Moffett’s resignation is his decision. His performance at his post, to which he was appointed by Freddie Mac’s regulator, has been exceptional.
“We are very sorry to see David go. He made valuable contributions to Freddie Mac as the company transitioned into conservatorship,” said Freddie Chairman John Koskinen.
A bit of history
Freddie Mac backs personal loans held by homeowners, much like Fannie Mae, which also was placed under conservatorship by the government last year.
Both companies have been infused with government money to keep them from collapsing. Freddie Mac has used nearly $14 billion in government funds, and the company says it will likely need more aid soon.
A big job
James Lockhart
President Barack Obama’s housing foreclosure prevention plan relies heavily on Fannie Mae and Freddie Mac. Whoever takes over Moffett’s post will be responsible for the fates of many mortgage holders who are struggling to keep their homes.
Director of the Federal Housing Finance Agency James Lockhart says he is working with Freddie Mac to ensure a smooth transition in leadership.
I can’t say that I don’t understand. I would feel like quitting too if I were in his shoes. I usually don’t have too much sympathy for the executive crowd but I certainly know about responsibility, and if I had been at the helm of a disaster of this magnitude I wouldn’t want to be in the limelight anymore, either.