In discussing the death of Freddie Mac CFO David Kellerman, we noted that apparently there had been conflict between Kellerman and the Obama Administration on a number of issues. Politico fleshes them out a bit:
...Kellermann and other Freddie officials "tussled" with the Federal Housing Finance Agency early last month as the company prepared to file a quarterly report with the Securities and Exchange Commission. Top executives, including Kellermann, were insistent that Freddie Mac inform shareholders of the cost to the company of helping carry out the Obama administration's housing recovery plan, the two newspapers reported. The Post, citing several unnamed sources, said the regulators "urged the company not to do so." An unnamed FHFA official who spoke to the Post disputed that, "saying the regulator did not oppose disclosure but how the information was portrayed in the filing."
In the end, FHFA reportedly retreated and Freddie formally disclosed that the Obama anti-foreclosure plan could force the firm, which is in a federal government conservatorship, to take a pre-tax charge of $30 billion.
So apparently, the Obama administration was asking Freddie Mac to fudge the books in order to hide the fact that implementing the "Obama Plan' would result in a $30 billion dollar loss, to be absorbed by its shareholders. Obama ("I won") has already showed he broaches very little dissent; how irritated must he have been at a man who was exposing the flaws of his creative mathematics? After all, Obama was sure that his plan would be a money maker for Freddie.
Mickey Kaus quotes Obama:
Obama: "While Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures."
Turned out Obama was off by $30 billion, in deep red. A drope in the bucket to a guy who spends trillions, but a huge hole if you are, say, a stockholder in Freddie Mac who is now forced to reckon with Obama's failure.
And that's the thing, isn't it? Obama knows nothing about wealth, or wealth creation - he's spent his whole life on the disbursment end (charity boards, state government, Senate) and never created dollar one. His wacky plan for Freddie Mac was a failure, and he put pressure on Kellerman via his regulators not to report the truth to the company's shareholders (a crime, perhaps?).
Obama didn't want to be embarrassed; to have his obvious ignorance of economics exposed. Kellerman did so, in compliance with the law. Now Kellerman is dead. What else did he know, what else may he have exposed, what additional threats may have been made by Barack Obama and his goon squad?
We may never know.
Barack may or may not have kicked the chair out from beneath the swaying Kellerman, but at the very least, he handed him the rope and pointed to the beam.
More coverage in the Washington Post and in the Wall Street Journal. The Journal confirms some of our thoughts about the loggerheads Kellerman and Obama were at:
In an SEC filing last month, Freddie said the Obama plan was likely to have a "significant adverse effect on our financial results or condition," notably on the valuation of guarantees the company has made on millions of mortgages.
And the lynch mob that Obama has been leading?
One neighbor said a private security service recently had been protecting the Kellermann home, apparently because of concern over public reaction to the bonuses.
Obama's first victim. Like all leftist leaders, he'll pile up a lot more before he's done.