Before becoming chief financial officer, Mr. Kellermann had served as senior vice president, corporate controller and principal accounting officer. He was a graduate of the University of Michigan and a volunteer board member of the D.C. Coalition for the Homeless.
Regulators with the Securities and Exchange Commission and Department of Justice have been interviewing Freddie Mac officials about possible accounting violations and other topics, the company disclosed in March. It is not known if Mr. Kellermann was one of those interviewed.The company recently disclosed in a public filing that in September it received a federal grand jury subpoena seeking documents concerning the company’s accounting, disclosure and corporate-governance practices. The investigation is being overseen by the United States Attorney’s Office for the Eastern District of Virginia. Freddie Mac has said it was "cooperating fully in these matters."
This is more and more starting to look like the 'bad loans' excuse for what happened to the capital of American financial institutions is a lie. More and more it looks like the capital of substantially all the huge financial institutions in the country was simply stolen by the top executives.
What are the chances the Obama Administration will engage in investigations and prosecutions as broad as the colossal thefts that have apparently occurred? None at all.
First, it would be devastating to the economy if it were even intimated how corrupt the financial system has become, and how little chance there is of reforming it. The new administration (how long do they remain 'new'?) is committed to repairing the economy and presumably is reluctant to press the apparently justified investigations and prosecutions because of the effect it would have on markets.
I suspect there is a deeper reason as well. They may be the liberal reformist wing of the managerial class, but they are the same class. They live in the wealthy suburbs of Northern Virginia too. Prosecuting an entire class, even a small elite class, would be class warfare, even if fully-justified. When that class is the ruling class, as the class of business executives surely is, the implications go beyond reform. Replacing the ruling class with a different one is revolution.
And that is not who the Obama Administration are. They are tepid reformers, institutional men. Interestingly, the Feds were closing in on Kellerman not because he stole, but because he stole from a government-regulated institution. Which is to say, the government men are protecting the institution of which they themselves are part.