Freddie Mac is the second largest buyer and guarantor of home loans in the United States. Created in 1970, Freddie Mac is a publicly owned company that purchases mortgages which it then bundles into securities for the purpose of selling on Wall Street.

On April 22, 2009, Freddie Mac's acting chief financial officer David Kellermann was found dead in his Virginia home. Authorities suspect he killed himself.CNN: Freddie Mac Cfo David Kellermann Found Dead (April 22, 2009)

1. Stock symbol: FRE (NYSE)
2. Annual Revenue:$43 Billion (2007)
3. Year Established: 1970
4. Phone: 703-903-2000
5. HQ: McLean, Virginia
6. CEO: David Moffett
7. Executive Vice President and General Counsel: Robert E. Bostrom
8. CFO: David Kellermann (died April 22, 2009)
9. Staff: 5,000
10. Industry: Mortgage Investment
11. Seized by the U.S. government in September 2008, placed under government conservatorship

Freddie Mac announced on March 2, 2009 that its CEO, David Moffett, will step down as CEO and leave the board of directors on March 13. Moffett took office as CEO in September 2008 when the government seized control of Freddie Mac.CNN: Freddie Mac CEO to resign (March 2, 2009)

Freddie Mac is a government sponsored enterprise (GSE), that was created by the United States government in 1970. It was created in order to end Fannie Mae's monopoly over the secondary mortgage industry.

Freddie Mac operates in the secondary mortgage market by purchasing mortgages from mortgage lenders. By doing so, the company assures a constant flow of new capital into the primary mortgage market. According to Freddie Mac, this additional capital lowers interest rates for mortgages by 1/2% and makes home ownership more feasible for the average buyer.Freddie Mac: Our Role Within the Secondary Market

On July 11, 2008, Freddie Mac shares experienced a significant decrease in value following rumors of a potential government takeover. The stocks recovered, however, after Treasury Secretary Henry Paulson announced that the government would continue to support Freddie Mac and Fannie Mae as shareholder-owned institutions.Reuters: Wall St sinks on Fannie and Freddie woes, oil's pop (July 11, 2007)

On July 14, 2008, a rescue plan for Fannie Mae and Freddie Mac was announced by the U.S. Treasury. Under the plan, Congress would lend money to the companies, extending their credit lines, and buy shares of equity.Reuters: Analysts split on Fannie-Freddie rescue plan (July 14, 2008)

On July 30, 2008, President George W. Bush signed a bill granting the Treasury Department the power to buy stock in or lend money to Fannie Mae and Freddie Mac. The bill tightens governmental controls over the two mortgage companies and creates a new affordable housing fund from their profits.Associated Press: http://ap.google.com/article/ALeqM5hs5zArRJP0FhzvfKNXi60I95LyqQD9285DN80 Bush signs housing bill to provide mortgage relief] (July 30, 2008)

In September 2008, the government seized control over Fannie Mae an Freddie Mac. The companies were placed under government conservatorship under the recently created Federal Housing Finance Agency. The CEO of both companies stepped down. At Freddie Mac, former CEO Dick Syron was replaced by David Moffett.

Moffett joined Freddie Mac as CEO in September 2008, when the government seized control of Freddie Mac. Moffett had previously served as vice chairman and chief financial officer of U.S. Bancorp and senior advisor at the Carlyle Group. On March 2, 2009, Freddie Mac announced that Moffett is resigning and will be stepping down on March 13, 2009. Moffett said that he plans to return to the financial services sector.CNN: Freddie Mac CEO to resign (March 2, 2009)

Former Freddie Mac CEOs Richard Syron and Leland Brendsel testified before the House Oversight Committee on December 9, 2008, that they and their competitors Fannie Mae had been led into making risky loans by regulators and lawmakers. Committee chairman Henry Waxman labeled the companies "irresponsible" for ignoring their own warning signs that the risk was too much to bear.CNN: Fannie, Freddie ignored warning signs (December 9, 2008)