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http://www.businessweek.com/news/2011-11-16/demarco-defends-executive-pay-at-fannie-mae-and-freddie-mac.html

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

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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.


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