The article incorrectly said that the FBI and the Securities and Exchange Commission had opened investigations into the death of Freddie Mac acting Chief Financial Officer David B. Kellermann. The FBI and the SEC, prompted by the apparent suicide, contacted Freddie Mac to see if there were any new developments related to financial issues already being investigated by authorities, according to two sources.
Job Stresses Led Freddie Mac Official to Discuss Resignation With Executives
Friday, April 24, 2009
The day before he was found dead in an apparent suicide, Freddie Mac Acting Chief Financial Officer David B. Kellermann discussed his possible resignation with top executives because of the stresses at work, according to several sources familiar with the matter.
Instead, company officials suggested that Kellermann take the rest of the week off and said that they would have further conversations about his future, two sources said. Kellermann agreed, they said.
It is unclear why Kellermann apparently took his life. Kellermann, 41, who was found by his wife in their Fairfax County home early Wednesday, left no note, law enforcement sources said.
The Securities and Exchange Commission and FBI have opened investigations into the death, which one source described as routine when a chief financial officer of a prominent company dies or resigns.
Kellermann had been strongly considering quitting the company he had served for 16 years, sources said. But a person familiar with the matter said Kellermann was also worried about how resigning would look to the public -- whether it would appear to be another defeat for Freddie Mac, which was seized by the government last fall amid crippling losses.
Sources said he had hardly seen his family, including his young daughter, in recent months. He had been consumed at work by a growing number of challenges, said the sources, who include a law enforcement official and others with first-hand knowledge. They spoke on condition of anonymity because of the sensitivity of Kellermann's death.
The challenges included a disagreement with the company's regulator over disclosing certain information to investors. Kellermann wanted to ensure that the company would properly dis close required financial information, according to a source. He had spent years helping design its internal accounting system after major earnings irregularities earlier this decade.
He also felt the weight of an imminent quarterly filing with the SEC, a source said.
This week, Freddie Mac hired a high-level consultant to help Kellermann with the myriad accounting questions he faced, a person familiar with the matter said.
One source said Kellermann had informed Freddie Mac management on multiple occasions during the past months that he wanted to resign. Other sources familiar with Freddie Mac said that although there were discussions about Kellermann leaving the company, they were not aware of any resignation letters.
Kellermann spoke with Freddie Mac Interim Chief Executive John Koskinen on Tuesday, and Koskinen tried to help him through the pressures he felt, according to a person familiar with the matter. They looked at Kellermann's calendar and decided that he could take time off.
After talking with Koskinen, Kellermann had a conversation with Freddie Mac's senior human relations executive, Paul George. Kellermann then decided to take a week off, and he delegated his responsibilities to two subordinates.