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Fannie And Freddie CEOs Get Up To $6M

From an unfazed Associated Press:

Fannie and Freddie CEOs to get up to $6M in pay


December 24, 2009

The two chief executives of Fannie Mae and Freddie Mac could get paid as much as $6 million for 2009, despite the companies’ dismal performances this year which cost taxpayers more than $100 billion.

Fannie’s CEO, Michael Williams, and Freddie CEO Charles "Ed" Haldeman Jr. each will receive $900,000 in salary, $3.1 million in deferred payments next year and another $2 million if they meet certain performance goals, according to filings with the Securities and Exchange Commission on Thursday.

The pay packages were approved by the Treasury Department and the Federal Housing Finance Agency, which regulates Fannie and Freddie.

That compares to $10.2 million former Fannie CEO Daniel Mudd received and $13.1 million former Freddie CEO Richard Syron pocketed in 2008. Both execs were ousted when federal regulators seized the companies in September 2008. In September, the federal government blocked exit packages for the pair worth up to $24 million.

Since then, Fannie and Freddie have needed $111 billion in taxpayer money to stay afloat, one of the most expensive aftershocks of the financial crisis….

Freddie Mac hired Haldeman, a former mutual fund executive, in July. At the time, the company disclosed his annual salary of $900,000 but did not disclose other incentive payments. In September, the company hired a new chief financial officer, Ross Kari, and said his pay package would be worth up to $5.5 million.

Williams, formerly Fannie Mae’s chief operating officer, took over as CEO in April after the first government-appointed CEO, Herbert Allison, took a job at the Treasury Department. Williams earned a base salary of $676,000 last year, plus a retention award of $260,000.

Fannie Mae and Freddie Mac provide vital liquidity to the mortgage industry by purchasing home loans from lenders and selling them to investors. Together, they own or guarantee almost 31 million home loans worth about $5.5 trillion. That’s about half of all mortgages.

Without government aid, the firms could have gone broke, leaving millions of people unable to get a mortgage. And most experts say the price tag for the bailouts will rise and complicate the government’s exit strategy…

Ho hum.

Fannie and Freddie are government run.

So their CEOs can make millions.


An update from the self-same Associated Press:

Treasury removes cap for Fannie and Freddie aid

By J.W. Elphinstone, AP Real Estate Writer

December 24, 2009

NEW YORK – The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

The Treasury Department said Thursday it removed the $400 billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government’s estimate this summer of $170 billion over 10 years.

Treasury Department officials said it will now use a flexible formula to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. Under the formula, financial support would increase according to how much each firm loses in a quarter. The cap in place at the end of 2012 would apply thereafter.

By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress

Who says there isn’t a Santa Claus?

This article was posted by Steve on Thursday, December 24th, 2009. Comments are currently closed.

2 Responses to “Fannie And Freddie CEOs Get Up To $6M”

  1. Liberals Demise says:

    Nothing says “Merry Christmas and Happy New Year” better than screwing the public out of 6 Million for failed policies.
    John Q. Public does this and we get mandatory 20 years in Cross Bar Hotel.

    I guess we are ripe for the fleecing!

  2. Chuckk says:

    Freddie and Fannie, I’d like to welcome you to your new government family. Let me introduce you to your brothers, Amtrak, Post Office, and GM. We’re all one big happy family now.

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