Released: September 15, 2008

No ‘golden parachutes’ for Fannie, Freddie ex-CEOs

Source: Zachary A. Goldfarb, Washington Post (Free Registration)

The government yesterday said it would not allow Fannie Mae and Freddie Mac to pay their departing chief executives the separation payments, known as “golden parachutes,” outlined in their contracts.

The Federal Housing Finance Agency (FHFA), the regulator that seized control of the mortgage giants last weekend and removed their chief executives, declined yesterday to specify what the executives would lose. Former Fannie Mae chief executive Daniel Mudd and former Freddie Mac chief executive Richard Syron together were eligible to receive as much as $25 million, according to outside compensation consultants who last week reviewed the companies’ financial disclosures.

“The Federal Housing Finance Agency notified [Mudd and Syron] that ‘golden parachute’ payments contemplated under their contracts would not be paid,” the agency said in a statement.

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