Fannie CEO Michael Williams To Quit After 2 Years, Pockets Millions After Receiving $60 Billion In Bail Out Cash

Tyler Durden's picture

A few months ago we learned that outgoing Freddie CEO Ed Haldeman quit Freddie after just two years of work, pocketing over $4 million primarily to collect over $21 billion in bailout funds from the US government. Now, it is the turn of the other broke GSE: according to a just filed 8K, Fannie Mae CEO Michael Williams is also stepping down without a replacement, so obviously the decision was made in haste and is an indication that nobody at the helm of the two largest mortgageholders want to do anything with what Obama and the Chairsatan have in store for the two behemoths holdings over $6 trillion in mortgages in their books. Incidentally, according to Forbes, Williams made $4.84 million in comp last year. His claim to fame: receiving a total of $60 billion in Treasury bailout cash (net of $17.2 billion in dividend payments) - hard job that one.

From Fannie:

From the 8-K

On January 6, 2012, Michael J. Williams, President and Chief Executive Officer of Fannie Mae (formally, the Federal National Mortgage Association), notified the company that he will step down from his position and the company’s Board of Directors when a new President and Chief Executive Officer is appointed.


Mr. Williams has been President and Chief Executive Officer of Fannie Mae since April 2009. He previously served as Fannie Mae’s Executive Vice President and Chief Operating Officer from November 2005 to April 2009. Mr. Williams also served as Fannie Mae’s Executive Vice President for Regulatory Agreements and Restatement from February 2005 to November 2005, as President—Fannie Mae eBusiness from July 2000 to February 2005 and as Senior Vice President—e?commerce from July 1999 to July 2000. Prior to this, Mr. Williams served in various roles in the Single?Family and Corporate Information Systems divisions of Fannie Mae. Mr. Williams joined Fannie Mae in 1991. Mr. Williams has been a Fannie Mae director since April 2009.

And some more on outgoing Mr. Williams compensation, including his thoughts on whether he deserves to be paid more than Obama (no debate there).

Fannie Mae and Freddie Mac were seized by the Bush administration in late 2008 amid mounting losses from mortgages gone sour and are controlled by a government conservator, the Federal Housing Finance Agency (FHFA).


Edward DeMarco, the acting director of FHFA, in 2009 approved compensation packages allowing the top executives at each firm to receive as much as $6 million each in annual compensation.


"What is going on over at Freddie and Fannie and what is the conservator doing to make sure the taxpayers are represented?" Neugebauer asked.


The Texas Republican said business as usual is not acceptable for the so-called government sponsored enterprises because "their business got taxpayers on the hook for a lot of money."


The pair have received more than $130 billion in direct taxpayer aid since being taken over by then Treasury Secretary Henry Paulson. The Obama administration on Monday said that tally could climb to $169 billion next year before slowing shrinking as losses are paid back to Treasury coffers.


"So what we want to make sure is that they understand, and hopefully we will fire a shot here, of whose interests that they need to be most concerned about. It's not the employees or the executives over at Freddie Mac and Fannie Mae, it's the American taxpayers," Neugebauer said.


Asked after the hearing why he deserved to paid more than U.S. President Barack Obama, who earns about $400,000 annually, Williams told Reuters his salary is determined by the government.


"My compensation is determined by the board of directors of FHFA and they determine what the appropriate compensation is for the executives of the company," Williams said.


Lawmakers debated with Williams and DeMarco over whether it was "reasonable" for taxpayers to foot more than $24 million in legal bills for former chief executive Franklin Raines and two other former Fannie executives accused of accounting misdeeds.


Asked by Reuters if his own compensation was "reasonable," Williams replied: "I leave it to them (FHFA) to determine what is appropriate compensation."

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Ahmeexnal's picture


Kick_the_Kan's picture

More looting before the eventual fall of the empire....

MillionDollarBonus_'s picture

Fannie Mae is doing critical work by boosting aggregate demand which fuels the real estate market and improves the economy for all Americans. Maybe if the Zerohedge community were more economically literate, there would be more praise for this essential service rather than envious whining about the CEO’s compensation (which is comparable to that of any other CEO).

Evil Bugeyes's picture

Sorry MDB, but I think you missed a perfect trolling opportunity here!

You should have argued that Fannie/Freddie CEO's are underpaid and commended their self-sacrifice.

James-Morrison's picture

We've had real change under Obama.

We changed from the toilet to the dumpster.

After four more years of Obama/Romney, we hope to change from the dumpster to the recycle bin.

Progress indeed.


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Sudden Debt's picture

I'm reading this book "from good to great" from jim collins right now. One of the companies described is fannie... That company is so dishonest to itself, always been and has done just enough to give enough reasons to send the entire board on the electric chair.

kito's picture

@mdb---thankfully for my sanity, i dont really believe you believe what you say you believe...................

StychoKiller's picture

"I leave it to them (FHFA) to determine what is appropriate compensation."

In other wordz:  "I didn't point the gun, I just stood there while the real crooks stuffed my pockets with FRNs!"

STP's picture

Fueling what real estate market?  The one that is flopping on the floor right now?  Maybe we should just pump some more of that Subprime juice back into it?  I'm sure that there must be some eager buyers of MBS's that are rated AAA by trusting credit agencies?  Right?

Then we could start doing Second's and even Third mortgages again and fuel the cheap goods we buy from China!

Nah, no need for Manufacturing anymore.  Who needs to make products anymore?

prains's picture

MDB _Tyler has yet to step in and smack you on the pp so you are obviously his plaything

rawsienna's picture

The losses at the GSE's were the result of terrible business decisions during the 2003-7 bubble in housing (which was a result of the idiocy of Greenspan policy along with congressional mandates that started with Bill Clinton).  Michael Williams took a job at a company with no future.  The losses were not his fault. Very tough to say what is or is not the correct pay for that job.  


sun tzu's picture

The GSE's are basically goverment bureaucracies now. Since when does a bureaucrat make $4M per year?

Don Birnam's picture

CNBC ran a quick piece by Diana Ole-lick -- replete with wailing and gnashing of teeth for the poor was such a difficult job ! No one appreciates how hard this "public servant" toiled to right the listing Fannie ship.

Ole-lick and the crony capitalist apologists paraded on CNBC -- is there a more effective emetic ?

lightning_fast_draw's picture

I would have been happy to do the job for $2million.

MachoMan's picture

I'd do it for free...  they might get what they pay for, but I couldn't do a worse job than my predecessors.  I probably have all the credentials to do it... 

Of course, the day following my induction there would be a lawsuit filed against every shitbird financial institution from BFE to NYC...  seeking to putback every damn piece of toxic garbage ever put into that pig.

Alternatively, there would be millions of unhappy homeowners getting notices of foreclosure...  and a whole bunch of shit getting marked to market.  We "might" have a bad quarter.  I would then have to respectfully decline any advance or "line of credit" with any financial institution...  and proceed to liquidation, with the hope of individual parcels being sold to individual investors and not "blocks" as planned, given the wealth gap.  The remainder of staff will be dedicated to providing information to all parties that request it regarding former employees' communications with the administration, congressmen, and the general financial community.

Resume available on request.

chunga's picture

Macho - what say you about this Jan. 5, 2012 Fed. Court Order? It's only a few pages long.

The Playing Field Has Been Leveled

MachoMan's picture

Doesn't appear to be much to me...  I'd take a "wait and see" approach...  the situation is so fucked that I fail to see, practically speaking, anyone making any proper resolution...  because it necessarily means tracking down the entire chain of assignment for EVERY mortgage before the court...  as well as ALL the documents associated therewith...  it's simply a logistical nightmare [but I'd sure as fuck do it for $300/hr...  nice if you can get it]

The problem with the whole "prove you already haven't been made whole" meme is that you're trying to prove a negative...  I don't know enough about the situation to know where to find the docs, but it seems inherently like a losing proposition when the other side has all the evidence...  it seems like it would require looking at all the financial institution's source documents/ledgers...  presuming you even get the "real" set of books (dealing with this issue in a present case, albeit without "derivatives"...  just good ol' cash).  Just out of experience, it would seem these types of cases would only work with a whistleblower/inside man giving information/documentation.  I doubt we would have even taken our case if we didnt have a few...  but in these mortgage cases?  Good luck with that shit.  If you'll lie to the court about standing, you'll lie to the court about anything.

If courts/legislatures were really serious about getting down to business, they'd throw their damn hands in the air and say for every mortgagee that attempts to foreclose and can't prove its standing from inception of the original mortgage, then it has to file a quiet title action (or, alternatively, a declaratory action) to determine the real holder...  publication costs, etc. are on the moving party...  then, the court publishes a warning order for all interested parties and if they don't appear, then their interests are toast.  [this should probably happen for all MERS mortgages anyway as part of a global attempt at resolution].  Once the holder is determined, the holder moves on to foreclosure...


chunga's picture

The way I read it is that the big card removed from the deck is the Motion for Protective Order.

If the "Special Master" allows Protective Orders to stand then it IS another parlor trick and timely objections will be filed by plaintiffs' counsel.

Otherwise Corp Rep Depos will be flying fast and furious. From what I understand - settlement offers are coming in by the dozens.

The LAST thing they want is a Trial by Jury. Banker men love leverage...but HATE being

This Assignment of Mortgage is a great example of Leverage.

It's criminal and I think it will be on an FBI desk tomorrow.

If so, I'll be providing details as soon as I get them. Thanks for looking.

MachoMan's picture

The elimination of the usual protective order (knee jerk reaction by judge often times or, alternatively, willingly agreed to by the opposing side just to get the documents) would be a game changer...  once there is a high profile case without a protective order, then everyone and their brother will have all the discovered documents and pleadings in a short time...  essentially it's groundhog day for them as each and every shitbird BFE town lawyer uses the same defenses...  [but each case is likely dissimilar enough to not be classified as a "class", despite commonality of facts]

I'm not sure about the criminality...  but I'd say it definitely doesn't pass civil muster in a myriad of ways.

However, again, practically speaking, I can't see how one would assert the other side has no standing to bring suit AND then settle with that party...  either the other party has some chip in the game or they don't...  and one party can't speak for another unless having the legal authority to do so (wouldn't count on those documents actually existing either).  Until the other party is definitively decided to be the holder, then any promise they make is contingent at best...

But, once the holder is determined, the homeowner has no more leverage...  it's game over.  [and on to the next bank to do it again with].  Of course, practically speaking, the homeowner has to presume the person/entity making the most ruckus is the likely holder...

alphabrew's picture

I think John Corzine is available to fill the spot.  Rehypothecation, bitchez!

lizzy36's picture

Fuck that.

I am forwarding them my resume. I can beg Treasury for funds while invoking MAD as well as the next kleptocrat. And i am a Canadian chick. Score 2 for diversity ;).


Au_Ag_CuPbCu's picture

I can't take any more, it's just embarrassing!

Theta_Burn's picture

Seems to be alot of these dildoes leaving in haste

Cream of the crop at the helm, what is everyone worried about?

Irish66's picture

How mant CEO's resigned in the last week?

Dr. Engali's picture

Sure looks like they are signaling to get out of Dodge.

Irish66's picture

Doc, I'm sane but we got some patterns developing.

Bumblebee Tuna's picture

Cut and run!

Maybe if they all resign now, everyone will forget who they were by the time all their corruption and book-cooking comes to light.  

Irish66's picture

Urban Outfitters quit tonight

CvlDobd's picture

I'm seeing urban outfitters, webmd, Pugh, citizens propert ins, and brooks tone recently.

There was a huge wave of CEO departures in early 2010 too.

Xanadu_doo's picture

golden parachutes, bitchez.

before the whole friggin plane crashes...

NotApplicable's picture

I shudder to think where we'd be without these valuable men at the helm. Well, other than recovering, that is.

Conrad Murray's picture

I wonder if the Occucommies or the Teaocrats will arrange a protest at this scumbag's house?

Snakeeyes's picture

Look. Fannie, Freddie and FHFA are under extreme pressure to do something stupid -- mass loan modifications that will lose billions (meaning taxpayers will lose billions). Look at these charts on housing and follow the gov'ts pushing of homeownership, mostly through Fannie and Freddie. Then look where we ended up.

Ineverslice's picture

Capitalism....Jump ship, as the rest of us take it in the Fannie.

willien1derland's picture

I thought that in a capitalistic society that rewards should be consummate with results? His 'compensation' (that would infer he WORKED for that $$$) was determined by a Board of Directors from FHFA? -What a damn TRAVESTY?! Now that no one is at the helm of either of the two largest mortgageholders - SCAMMIE MAE & FREELOADER MAC will probably be sold to George Soros so he can foreclose on the entire US in one go...Williams will probably wind up at some other 'viable' mortgage conveyer like Citibankster...

Oh regional Indian's picture

Well now that is one big fat fannie, mae.

West. Ward. hoe.

OTish, one of my favourite web-reads, via me, via LaRouch PAC publications and a couple of vids..


Rainman's picture

Just when you think these gubmint fuckerz can't get more brazen, they pay a quadmillon to some insider asshole to administrate Cat 1 failure. Damn they clever.

chunga's picture

Ha Ha Ha!

Sorry for doubling up. The link below is running on another ZH thread. I love it!

Where you going dopey?

Freshman RI Senator levels serious allegations at Fannie Mae & Freddie Mac - Jan. 10, 2012

You're all a bunch of swindlers out to fatten yourselves up and DESTROY the country. Fuck you!

pakled's picture



Pop quiz for star trek fans: There is an ad that shows up routinely here often entitled "unthinkable poisewd to happen", with a sad faced man. What an expression on his face. He is an actor that did a guest shot on Star trek NG. Can you name the episode?



r00t61's picture

He looks like the character "Kevin Uxbridge" from the episode "The Survivors."

But that actor, John Anderson, died in 1992.  So who can really say...


StychoKiller's picture

"Mission accomplished, beam away team back to the ship..."

MrBinkeyWhat's picture

Whoa! Got a 404 the first time. does one get one of these "jobs". Wink1

Caviar Emptor's picture

Off topic but we have been talking about totalitarianism in USA: 

It's spreading to the school system. Freedom of expression? Lol. (Insert jackboot into mouth) Glad I missed all this crap:

Seasmoke's picture

we need to stop calling them leaders or elite and calling them scumabgs and criminals

lizzy36's picture


They are just legal mafia without the honor of the real thing.

Xanadu_doo's picture

fuck these crooked theiving bastards.


non_anon's picture

only way to do that is stop supporting them with your tax dollars