http://www.nytimes.com/2009/04/23/business/23freddie.html?_r=1&hp I have noted an apparent disappearance of screen names on AF, and not sure whether that is the way to go.
Wow. Ouch.
“He had previously been the company’s controller and principal accounting officer. Mr. Kellermann’s job made him responsible for financial controls and reporting at Freddie Mac, a housing-finance company backed by the federal government. He had been with the company for more than 16 years, starting as a financial analyst and auditor in 1992, according to the company’s Web site.” “He was deeply involved in rebuilding Freddie’s accounting systems after auditors discovered in 2003 that the company had violated accounting rules in an attempt to smooth out sharp fluctuations in earnings.” WOW is right. I wonder what he knew that made him want to kill himself.
read the comments on the WSJ website… holy crap that is some scary stuff!
looks like a young guy too.
I’m not American so I don’t get the govt’s involvement in Freddie Mac, but how would an accounting fraud look for a ‘government-hybrid public-private’ institution? How much control does the govt have with Freddie? Before and After conservatorship. Little? None? Plenty? A fraud at Freddie could turn into a fiasco for politicians.
I’m an American and I don’t get it. So, it has nothing to do with nationality.
KJH Wrote: ------------------------------------------------------- > I’m an American and I don’t get it. So, it has > nothing to do with nationality. +1
MattLikesAnalysis Wrote: ------------------------------------------------------- > I’m not American so I don’t get the govt’s > involvement in Freddie Mac, but how would an > accounting fraud look for a ‘government-hybrid > public-private’ institution? How much control does > the govt have with Freddie? Before and After > conservatorship. Little? None? Plenty? A fraud at > Freddie could turn into a fiasco for politicians. I think this would be the third major accounting scandal at a GSE since 2000…
Does anyone wonder if this is really a suicide? I recall hearing about Clifford Baxter’s suicide while a senior in high school. Reports later came out that his suicide had some unusual circumstances with some questionable bits of evidence. Though this was never really addressed or acknowledged. http://www.cbsnews.com/stories/2002/04/10/eveningnews/main505845.shtml
ahahah Wrote: ------------------------------------------------------- > I think this would be the third major accounting > scandal at a GSE since 2000… KJH Wrote: ------------------------------------------------------- > I’m an American and I don’t get it. So, it has > nothing to do with nationality. +2
And this Freddie Mac/GSE stuff is about a zillion times bigger than Enron.
MattLikesAnalysis Wrote: ------------------------------------------------------- > ahahah Wrote: > -------------------------------------------------- > > I think this would be the third major > accounting > > scandal at a GSE since 2000… > > KJH Wrote: > -------------------------------------------------- > > I’m an American and I don’t get it. So, it has > > nothing to do with nationality. > > +2 Maybe he (the Freddie Mac executive) got images in his head showing the duo Lay and Skilling, so he simply panicked when the reporters were gathering outside his house. Enron’s Jeffrey Skilling was sentenced to 24 years and 4 months in prison. Kenneth Lay’s sentencing was scheduled to take place on 11 September 2006 but Lay died already on July 5 while vacationing in Colorado - a sudden heart attack.
so call me ignorant but what is that Michael guy saying in the comments to WSJ article. is he saying that courts wrongfully ordered eviction and foreclosures or the other way around?
Mediochre- your scenario is the GOOD one. The bad scenarios are that he committed suicide because he put it all together. He realized gses don’t add up. The ponzi scheme is coming unraveled. At some point, our society comes unraveled. Systematic risk turns into systematic collapse. No more free coffee refills at the diner.
needhelp, I have seen some courts tossing eviction orders because the bank cannot produce the original loan docs. I guess if something like that happened someone could make a claim on the title insurance?
i wonder if now is the time to buy my first house. my tax lady persuaded me to get married and also to buy a house to get my share of $8k. but the thing is that $8k is phased out for income over $75k, which i may or may not make.
KJH Wrote: ------------------------------------------------------- > Mediochre- your scenario is the GOOD one. > > The bad scenarios are that he committed suicide > because he put it all together. He realized gses > don’t add up. The ponzi scheme is coming > unraveled. At some point, our society comes > unraveled. Systematic risk turns into > systematic collapse. No more free coffee refills > at the diner. you’re looking for systemic risk and systemic collapse. systematic risk is undiversifiable market risk where as systemic risk is the risk of total collapse. i’m assuming they’re strongly correlated nonetheless.
needhelp Wrote: ------------------------------------------------------- > i wonder if now is the time to buy my first house. > my tax lady persuaded me to get married and also > to buy a house to get my share of $8k. but the > thing is that $8k is phased out for income over > $75k, which i may or may not make. i’m really hoping this is sarcasm. a possible accounting fraud at a gse is the trigger to buy a house? needhelp, come on…
This is like that show prison break. There is a bigger conspiracy a foot here. “The company” is behind this pulling all the strings. I may have said too much, if I never post again after this, you’ll know why…