(The item "Freddie Mac CEO To Resign, Seeks Return To Private
Sector," published at 9:55 a.m. EST Monday, incorrectly said
Moffett had been U.S. Bancorp's CEO. The correct version
follows.)
DOW JONES NEWSWIRES
Government mortgage giant Freddie Mac (FRE) said Chief Executive
David Moffett will resign no later than March 13, and the company
is working with the Federal Housing Finance Agency to appoint his
successor.
Freddie's shares were recently down 2.4% at 41 cents. The stock
is off 44% so far this year and 98% in the last year.
The company, which has been under government conservatorship
since September after it and sister company Fannie Mae (FNM) ran up
billions of dollars in losses and saw their portfolios suffer amid
rising foreclosures and exposure to subprime mortgages, also said
it continues to believe the FHFA will submit a request for another
$30 billion to $35 billion from the Treasury Department's Troubled
Asset Relief Program.
Moffett told Freddie's board that he wants to return to a role
in the financial-services sector. Moffett took over as Freddie's
CEO in September amid the federal government's takeover plan. Prior
to that, he served as chief financial officer of U.S. Bancorp
(USB).
Freddie is slated to report its fourth-quarter results in the
next several days, and they are expected to show increased losses
and another request for more capital from the federal
government.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com
(Aparajita Saha-Bubna contributed to this story)