Government: Departing Fannie, Freddie CEOs Won't Get 'Golden Parachutes'

[tannybogus]

The federal government said today it would not allow mortgage finance firms Fannie Mae and Freddie Mac to pay their departing chief executives the "golden parachutes" outlined in their contracts.

In total, their severance packages could have been worth as much as $25 million. But the Federal Housing Finance Agency (FHFA), the regulator that took control of the mortgage giants last weekend, declined to specify what the executives, Daniel Mudd of Fannie Mae and Richard Syron of Freddie Mac, would lose or what parts of their contracts were in play.

"The Federal Housing Finance Agency notified former Fannie Mae Chief Executive Officer Daniel Mudd and former Freddie Mac Chief Executive Officer Richard Syron that 'golden parachute' payments contemplated under their contracts would not be paid," the agency said in an afternoon statement.

A spokesman for Syron did not have immediate comment, and a lawyer representing Mudd did not return a phone call or e-mail. A law passed by Congress this summer granted the director of FHFA, James Lockhart III, the power to limit severance payments made to departing executives. But the law is untested and it was unclear whether Mudd and Syron would agree.

Lockhart has been under political pressure to curb what Mudd and Syron receive. Sens. John McCain (R-Ariz.) and Barack Obama (D-Ill.), the major-party presidential candidates, have called on him to limit and or end payments, as have other prominent lawmakers.

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/14/AR2008091401698_pf.html

I know they will sue, but at least they will have to work for it.

[FreakinDJ]

1. The Humanity The Humanity - Oh God the Humanity

tisc tisc tisc

[rfranklin]

2. They should face execution if not worse...

They are scum.

[Duer 157099]

3. They'll probably have to settle for Silver parachutes n/t

[dchill]

4. Perhaps they are holding out for the coveted...

Black Platinum Parachutes - you haven't heard about BPP's because they are, of course, only for the very elite.

[firedupdem]

5. They're not leaving empty handed, thats for sure! n/t

[pansypoo53219]

6. how about

a golden shower?

[FreakinDJ]

7. HHmmmm....

[daleo]

8. They won't get $25 million, that's for sure

I would be very surprised if they got any more than $24.9 million. After all, we must consider moral hazard.