2011年4月1日星期五

Report criticizes high numbers at Fannie and Freddie

The company, whose Schicksale are decided, given by the Congress in this year a combined $17 million their bosses in 2009 and 2010, the report found the two full years if Fannie Mae and Freddie Mac districts (ku) of the State. The six executives in the company received $35.4 million in the two years. Because Fannie Mae and Freddie Mac were taken over in September 2008, the company have mounting mortgage losses an infusion $153 billion taxpayer required. Total losses to $363 billion until 2013 to reach Government estimates.

Charles E. Haldeman Jr., a former head of State of Putnam Investments, the huge fund management concern, since 2009 Freddie Mac as its Managing Director. He made $7.8 million for 2009 and 2010. Fannie Mae's Chief is Michael j. Williams, who has worked since 1991 in the company. He received $ 9.3 million for the two years. Company officials refused to comment.

With hundreds of billions in required government support, to keep the company running arise questions about the nature of the pay packages and how performance goals are determined. The reward was approved agency, which preserve the assets of Fannie and Freddie for taxpayers is responsible of the housing management.

"F.H.F.A. has a responsibility to effectively, consistently and reliably ensure Congress and taxpayers that paid, Fannie Mae and Freddie Mac's executives reasonable," ", said Steve A. Linick, the newly appointed Chief of staff of the Agency, in a statement.? "This applies especially when you realize that the US Treasury near $154 billion to stabilize Fannie Mae and Freddie Mac, has invested" and they "spend tens of millions of dollars on executive compensation."

The report cited a "lack of standardized evaluation criteria, documentation of administrative procedures and internal controls" in the supervision agency, missing steps, which may have led to overpayments.

The Chief of staff, for example, said that taxpayers can have simplified to support the performance benchmarks for managers meet. In 2009 issued Fannie Mae 47 per cent of new mortgage-backed securities, far above the target of 37.5 percent. But, as the report found this hurdle was almost certainly deleted because the Federal almost reserve all 2009 bought the mortgage issued securities of Fannie and Freddie.

In response to the report, the housing agency, said that it would"a formal and systematic approach" review of the performance benchmarks and the assessment of whether they have been met executives of the company. Said a spokeswoman for the Agency officials refused to comment.

Rich executive pay that does not track a company's performance led to anger among shareholders in the last few years. As the Government, some joined the largest compensation was questionable for the taxpayer to support financial institutions in the nation in 2008. For example, executive pay was received at universities assistance under the troubled asset relief program, subject to approval by a supervisor, the special master for tarp. Fannie and Freddie were not required to send this process because their support is not from TARP.

As the primary regulator and curator of both companies, the Agency has housing draw wide powers of the company activities; There are Executive Board members and officers, such as replaced. And it can companies, golden parachute payments to executives cash. It is special master on executive pay at Fannie and Freddie with the TARP, after they were rescued by the Government.

Nevertheless, figures the Agency delegates decisions to the company boards accept their recommendations "unless there is an observed reason to do otherwise" according to the Inspector General report. The F.H.F.A. receives employed consulting consultant as well as the work of those of Fannie and Freddie own compensation.

The Inspector General report found that the executives at Fannie and Freddie get far more than their counterparts in other federal housing agencies. The top executive at Ginnie Mae, received, for example, an annual salary of less than $200,000. The Chief of staff proposed that the Agency verify the discrepancy and it is for the taxpayer.

Agency officials say the salaries and deferred compensation paid to executives at Fannie and Freddie are necessary, it to attract and keep talent needed to effectively perform these operations. You say that the current numbers of Fannie and Freddie is about 40 percent less than before the bailout and claim that the compensation plans based ability on the financial and performance, such as provision of liquidity and affordability to the mortgage market targets on the companies.

Agency, be predicated to the Congress on Thursday of proposals, Fannie and Freddie to overtake Edward j. DeMarco, Director of the federal housing finance. "I am concerned that great risk for the conservatorships is legislation, the compensation levels and programs in place today with the use of a federal pay system to overtake State employees and thus the taxpayers," he said.

Mr. DeMarco testified last year that the remuneration of managers plans for Fannie and Freddie are designed to meet the objectives of the guardianship "to minimize executive decision making with the long-term financial Outlook which align business and costs for the taxpayer."

As shares of Fannie and Freddie have little value, long-term incentive pay, remuneration of executives of outgoing payments in base salary and deferred salary consists of the companies.

But Brian Foley, compensation consultants in White Plains questioned the characterization of which is company incentive pay in the long term, given the fact that it paid completely within two years. "Two year performance one hundred percent of the compensation to be paid without regard to performance, and a fair share," he said. "I understand the stock is worthless, but this does not mean, you may have cash on the table for a long time." "If someone must have good long-term performance, is not Fannie Mae and Freddie Mac?"


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