The Rocky Mountain Collegian

Issue date: 4/23/09 Section: News

Media Credit: Associated Press A Fairfax County, Va., law enforcement officer, left, talks to a Fairfax County detective, right, at the home of David Kellermann, acting chief financial officer of mortgage giant Freddie Mac, in Vienna, Va., after he was found dead at his home Wednesday morning in what police said was an apparent suicide.

WASHINGTON - The chief financial officer of money-losing mortgage giant Freddie Mac was found dead in his basement early Wednesday morning in what police said was an apparent suicide.

David Kellermann, 41, apparently hanged himself, said a law enforcement official familiar with the investigation. He asked not to be identified because the investigation was ongoing.

Kellermann's death is the latest in a string of blows to Freddie Mac since it was seized by the government last September. The company, which owns or guarantees about 13 million mortgages, has been criticized for financing risky loans that fueled the real estate bubble and are now defaulting at a record pace.

Freddie Mac lost more than $50 billion last year, and the Treasury Department has pumped in $45 billion to keep the company afloat. Last month, David Moffett, the government-appointed chief executive, resigned in frustration over strict oversight.

Kellermann worked for Freddie Mac more than 16 years, starting out as a financial analyst and auditor. He was named acting chief financial officer last September when the government ousted former CEO Richard Syron and Kellermann's predecessor Anthony S. "Buddy" Pizsel.

Neighbors said Kellermann had lost a noticeable amount of weight under the strain of the new job. Some neighbors said they suggested to Kellermann should quit to avoid the stress, but Kellermann responded that he wanted to help the company through its problems. The neighbors did not want to be quoted by name because they didn't want to upset the family.

As the company's financial chief, Kellermann oversaw a staff of about 500 and was working on the company's first-quarter financial report, due by the end of May. Federal regulators closely oversee the company's books and sign off on major decisions.

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