Tags: Pay | Fannie | Freddie

Regulator Plans ‘Gradual Reductions’ of Pay at Fannie, Freddie

Tuesday, 15 Nov 2011 07:56 AM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

The chief regulator for Fannie Mae and Freddie Mac defended salaries and bonuses at the government- owned housing-finance companies and said he is planning for “gradual reductions” in compensation.

“At the present, my plan for executive compensation is to continue to seek opportunities for gradual reductions, particularly when executives leave,” Edward J. DeMarco, acting director of the Federal Housing Finance Agency, said in testimony prepared for delivery tomorrow to the U.S. Senate Committee on Banking, Housing and Urban Affairs.

“This approach is consistent with the administration’s notion of a gradual wind down” of Fannie and Freddie, which are now in government conservatorship, DeMarco said in the prepared testimony.

Lawmakers have expressed anger at bonuses and pay to top executives at the companies. DeMarco approved packages in 2009 that awarded a total of $17 million over two years to chief executive officers Michael J. Williams of Fannie Mae and Ed Haldeman of Freddie Mac.

DeMarco has defended his decision, saying he needs managerial talent capable of managing risks and limiting taxpayer liabilities.

In his testimony, which was obtained by Bloomberg News, DeMarco criticized proposed legislation that would place employees at the two companies on the government pay scale. The two firms need “an orderly transition” to a new system of housing finance, not “a sudden shock,” DeMarco said.

Fannie Mae and Freddie Mac have drawn more than $170 billion in aid from the Treasury Department since they were seized by the federal government in 2008 on the brink of insolvency. Both companies reported third-quarter losses.


© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved