March 2, 2009

Freddie Mac CEO steps down

David Moffett, chief executive officer at the Federal Home Loan Mortgage Corp., has said he will step down after six months on the job.

In a statement, Freddie Mac Chairman John Koskinen said, We are very sorry to see David go.

Moffett, the chief financial officer at U.S. Bancorp from 1993 though 2007, took over Freddie Mac at the U.S. Treasury's request when the mortgage broker, known as a government-sponsored enterprise, fell into conservatorship.

While no reason was given for his departure, a close friend told The Wall Street Journal that Moffett was frustrated with the red tape that came along with the conservatorship. He's a private-sector guy, this friend said.

Under the conservatorship guidelines, the Federal Housing Finance Agency, Freddie Mac's regulator, acts as the firm's board. As such, small and large decisions must be funneled through the regulator, the Journal said.

Hurt by asset write-downs, Freddie Mac has had to borrow $14 billion from the government and may need an additional $35 billion after its next financial statement is released, reported.

Freddie Mac said it will announce Moffett's replacement by March 13, when Moffett is expected to depart.