Bloomberg News

DeMarco Defends Executive Pay at Fannie Mae and Freddie Mac

November 16, 2011

Nov. 10 (Bloomberg) -- The chief regulator for Fannie Mae and Freddie Mac defended bonuses and salaries at the government- owned mortgage-finance companies, saying executive pay is at or below the median of similar enterprises.

“I need to ensure that the companies have people with the skills needed to manage the credit and interest rate risks of $5 trillion worth of mortgage assets and $1 trillion of annual new business the American taxpayer is supporting,” Edward J. DeMarco, acting director of the Federal Housing Finance Agency, said in a letter to lawmakers dated today.

The letter was a response to criticism from “numerous” U.S. senators regarding compensation at Fannie Mae and Freddie Mac, FHFA said in a statement. The two firms have been sustained by Treasury Department aid since they were seized by the federal government amid soaring losses in 2008.

DeMarco said he plans to explain the compensation packages more fully at a Nov. 15 hearing where he will testify before the Senate Banking Committee.

--Editor: Gregory Mott

{FMCC US <EQUITY>} {FMNA US <EQUITY>}

NI US NI GEN NI ABS NI BNK NI BON NI CEN NI CDO NI CNG NI COS NI CRUNCH NI CMO NI CFT NI CMD NI DCAA NI DOCUMESS NI DRV NI DLQ NI ECO NI EXE NI EXC NI FIN NI FINREG NI GOV NI HOM NI HSNG NI INS NI MARKETS NI MKTREG NI MOR NI MBS NI OCC NI REL NI RELTOP NI RULES NI SUBPRIME NI SCR NI TRE NI TARP NI USGOV NI USFINANCE NI WFINANCE

To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net.


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus