Fannie Mae CEO to Resign
Fannie Mae CEO to Resign
Michael Williams, the CEO of Fannie Mae, announced on Tuesday that he plans to step down as CEO, but he will continue on in his role until a successor is named.
“The time is right to turn over the reins to a new leader,” Williams said in a statement, not providing a specific reason for his departure. Williams became CEO in 2009 of the financially struggling mortgage giant, which reported a $5.1 billion third-quarter loss in November.
Williams’ announcement follows a few months after Charles E. Haldeman, the CEO of sister company Freddie Mac, announced plans to step down as CEO sometime this year too.
Williams, Haldeman, and other executives at the GSEs have faced increased scrutiny on Capitol Hill in recent months over their hefty paychecks and bonuses, which have come at a time when the mortgage giants have continued to ask for more bailout money from taxpayers, CNNMoney reports. Williams and Haldeman’s paychecks in 2011 were expected to total about $6 million a piece.
The mortgage giants continue to face steep losses due to the foreclosure crisis. To date, Fannie Mae and Freddie Mac have received about $150 billion in bailout money, but that number could grow to $259 billion, according to the Federal Housing Finance Administration, the mortgage giants’ government regulator.
Source: “Fannie Mae CEO to Resign,” CNNMoney (Jan. 10, 2012) and “Top Executive Announces Plan to Leave Fannie Mae,” The New York Times (Jan. 10, 2012)
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