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