The regulator of Fannie Mae and Freddie Mac said Sunday that it won't allow the companies to make "golden parachute" severance payments to the mortgage companies' ousted chief executive officers.
In a statement, the Federal Housing Finance Agency said such payments wouldn't be made to Daniel Mudd and Richard Syron, despite provisions in their contracts. Mr. Mudd served as chief executive of Fannie and Mr. Syron was chairman and CEO of Freddie until last weekend, when the regulator seized control of the companies, saying they were in danger of running out of capital.
News reports that the two executives stood to receive millions of dollars in severance payments under their contracts triggered public protests from numerous politicians and inspired political cartoons in newspapers.
Monday, September 15, 2008
Former Fannie and Freddie CEOs Won't Get Millions After All
Finally, the Feds do something right:
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Good start. Now shareholders and tax payers should sue to get the bonuses back that these charlatans made during the heyday when they were being reckless with the companies' long term prospects for the sake of short term gain. Heck, maybe even pursue some jail time. Why is this any better than Enron?
ReplyDeleteFor once, someone has finally done the right thing here! Why on earth would they be entitled to a penny for running the companies into the ground? Unfortunately, this opens the door for all of the pre-Madonna ousted executives with their frivolous lawsuits, tying up our court system and wasting more of our tax dollars trying to get something they’re not due.
ReplyDeleteprima donna. It's not "before Madonna."
ReplyDeletei want to rejoice at the good news, but my gut feeling tells me these CEOs will still be getting more than they deserve....
ReplyDeleteagree with the previous commenter that some jail time would also be appropriate...
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They should also sue Frank Raines to get his bonus back. Most of the bad loans that are collapsing now had been made before Mudd took over from Raines. Mudd's "golden parachute" are peanuts compared to Raines' 100+ million.
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