CEO leaving troubled mortgage giant Freddie Mac after 6 months

ByABC News
March 2, 2009, 9:25 PM

— -- David Moffett will leave his position by March 13. He had indicated that he wants to return to the financial services industry.

His announcement comes as a critical juncture, leaving the financially battered company a crucial segment of the beleaguered housing market with no foreseeable leader.

It also comes as Freddie Mac seeks billions of dollars more in federal financial help and is being hailed by the Obama administration as a vehicle for restoring confidence to the housing market.

Freddie officials said Monday that an interim successor will be named before Moffett departs.

"I don't know what to make of this," says Mark Zandi at Moody's Economy.com. "It's never a good thing for an institution to be without a leader, especially in a time of crisis."

The announcement comes as Freddie gets billions in federal bailout funds. Already, it has tapped $13.8 billion in government funds, and informed regulators it may need up $30 billion to $35 billion more from Treasury to help ensure positive stockholder equity and maintain adequate capital. Freddie will report its financial results in March, and that is expected to show additional losses.

Freddie Mac has about 5,500 employees and has been thrust into the spotlight since last fall, when the federal government put the company into conservatorship. Moffett was appointed to replace Richard Syron as CEO.

John Koskinen, chairman of the board, said Monday in a statement that "we are very sorry to see David go. He made valuable contributions to Freddie Mac as the company transitioned into conservatorship."