Schwarzenegger creates new endangered species: Californians!

Will the death of Freddie Mac's David Kellerman lead to a thorough investigation of the corruption at Fannie Mae, Freddie Mac and those in Congress who assured us that these organizations were safe, sound and well-managed?

While it is sad news when a person (allegedly) takes their own life, one can not help but wonder about the deceased’s career with troubled Freddie Mac.

Another democrat scandal brewing?

What we do know is that democrats considered the Government Sponsored Entitites to be their personal playground: offering up lucrative jobs for those democrats needing work; purchasing loans for projects in politically sensitive districts; promoting “affordable housing” to those designated as lower-income minorities and portrayed as victims by the democrat party and providing campaign funds and other support through lobbying and associated foundations. We also know that both Fannie Mae and Freddie Mac were charged with serious violations of accounting and disclosure rules as they apparently “cooked the books” in order to present “smoothed earnings” to Wall Street and secure multi-million dollar bonuses for their executives.

Kellerman …

What we do know about David Kellerman, acting chief financial officer of Freddie Mac, is that he was found dead at his home, hanged, in what police are now characterizing as an apparent suicide. We also know that Kellerman worked for Freddie Mac for at least 16 years which placed him on-scene during a period of known financial shenanigans. 

It appeared Kellerman lived well and apparently, at this point in time, did not seem to be in financial difficulty; on track to receive a major bonus for his past work.

Some pointed out that Kellerman appeared to be stressed, having lost a noticeable amount of weight over the past months. It is not known whether or not he was actually ill, which could explain why a person might decide on suicide rather than face lengthy medical treatment with an uncertain outcome. 


Which leaves the matter with an unsatisfying answer. Could there be more to the story considering the Freddie Mac was said to be under investigation for unspecified reasons?

What makes the timing of Kellerman’s death especially suspicious is that David Moffett, Freddie Mac’s first appointed Chief Executive Officer abruptly resigned after only six months on the job. And what we do know is that Freddie Mac’s first quarter financials is due at the end of May and that it would require the signatures of Freddie Mac’s top executives to attest that the information was true and correct; under potential criminal and civil liability for signing off on financials which might subsequently be found to contain deliberate misrepresentations, misstatements or fraud.

It is also known that the GSE’s were under tremendous pressure by the democrats and the Administration to avoid revealing that certain Congressional and Administration housing policies may have played a significant part in creating the catastrophic failure of mortgages purchased knowing they were created for people who could not qualify for conventional mortgages and needed reduced or relaxed underwriting standards to obtain funding. It is also known that key executives knew about increased default rates associated with these mortgages and failed to adequately hedge the risk.

Unfortunately, many of the borrowers, as well as the real estate agents, appraisers, lenders and others, did engage in some form of fraud in originating mortgages. And there is now known hedge against fraud or the lack of an income stream to service debt while the collateral keeps dropping to an uncertain lower price.

The democrats, led primarily by Representative Barney Frank, Chairman of the House Financial Services Committee, and Christopher Dodd, Chairman of the Senate Banking Committee both have records of suspicious behavior when it comes to the GSEs, Fannie Mae and Freddie Mac. Allegedly blocking all attempts at reforming the two major mortgage institutions in America a few years before their meltdown. Loudly proclaiming that the GSEs were well-regulated, well-run, well-capitalized and were managing their risk well. Attested to by various and sundry democrats such as Maxine Waters.

A guessing game …

Until we know more, it remains a guessing game? A deadly serious guessing game with national ramifications if it appears that there was continued wrong-doing after the alleged clean-up after the last accounting scandals.

Keeping the secrets in-house?

In a previous blog entry, I questioned the wisdom of replacing Fannie Mae’s acting head with Michael Williams, an 18-year veteran of the government-controlled company, as president and chief executive officer. Considering he, too, was in the house during the accounting scandals and losses of BILLIONS of dollars. The previous head of Fannie Mae was assigned to be the Administration’s point man in disbursing and overseeing the governments ineffective $700 BILLION TARP (Troubled Assets Relief Program) fund.

Considering the circumstances surrounding Kellerman’s death – a full and complete criminal investigation needs to be undertaken; including the investigation of sitting members of Congress in this debacle which killed the United States economy and cost many of us a significant portion of our life savings.

-- steve

mixedcheck4 Corruption
mixedcheck4 Cover-Up
mixedcheck4 Complacency
mixedcheck4 Creator/Participant
mixedcheck4 Conspiracy
mixedcheck4 Complicity
mixedcheck4 Illness

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