Economic toll reaches deep

By NATALIE KEITH

With dropping home values and mounting foreclosures, the financial impact the housing crisis is having on homeowners is clear.

But, as homeowners look for scapegoats to blame for their misfortunes, the crisis is also having an impact on executives who -- rightly or wrongly -- are shouldering much of the blame for the collapse.

"Americans are seeing their jobs and their hopes for the future evaporate," said Dr. Rosalind Dorlen, a clinical psychologist based in Summit, N.J. "We're seeing a lot of blame being placed on executives."

Among Dorlen's specialties is psychotherapy for financial stress. As a suburb of New York City, Summit is home to many Wall Street workers. Like others in her field she is seeing more referrals for services, not just from executives but from rank-and-file workers as well.

"We're seeing more and more anxious people seeking help," she said. "There are some people who have feelings of shame, humiliation or guilt," she said. "If they have nobody to talk to, these feelings can result in hopelessness."

News reports Wednesday that Freddie Mac's acting Chief Financial Officer David Kellermann was found dead of an apparent suicide (see Inman News) is a vivid portrait of tragedy involving an executive who was close to the mortgage-market crisis. A 16-year veteran of the company, Kellermann had been serving as acting CFO since late September.

Although the circumstances surrounding his death are unclear, it comes at a time when the company -- which lost more than $50 billion last year and has received $45 billion in government assistance -- is being investigated by the Securities and Exchange Commission and Justice Department for issues such as possible accounting violations.

In some cases executives -- hailed for their business acumen during the boom times -- saw their reputations turn with the economy. ...CONTINUED

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