Tuesday, August 05, 2008

Leroy! Wake up, man!

Watching the Fannie and Freddie Follies is sort of like watching a horrible wreck happen on the highway when you're far enough away to see it coming and not be directly involved, but you know you're going to be caught in the chaos of the traffic jam to follow.

At Freddie Mac, Chief Discarded Warning Signs

I encourage you to read the entire article (a bit long, but interesting). However, a few of the many money quotes:

Though the current housing crisis would have undoubtedly caused problems at both companies, Freddie Mac insiders say Mr. Syron (CEO of Freddie Mac--FH) heightened those perils by ignoring repeated recommendations.

and

The depths of Freddie Mac’s problems are complicated by its long-planned, continuing search for a chief executive to replace Mr. Syron, who is expected to remain chairman. Two people who were approached — Kenneth I. Chenault of American Express and Laurence D. Fink of BlackRock — said they did not want to be considered for the position.

and

“I’ve had four other jobs as C.E.O., and I came out of them all pretty well,” Mr. Syron said. “What I’m working for right now is to save my reputation.”

As passengers in the Econo-mobile, all we can do at this point is hang on and hope the crash isn't too bad.

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