Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

I think even Mel Watt realized the MAJOR PROBLEM of trying to run 2 of the worlds largest financial intermediaries with very little capital and ZERO FINANCIAL INCENTIVES FOR TOP SHELF TALENT!

Let's see if Sandra L Thompson knows this or will figure it out!

"Nobody expected that the two mortgage titans would still be around so long after the government took them over at the height of the financial crisis in 2008. Watt says Fannie and Freddie’s CEO pay structure needs a makeover, in part to keep the chief executives from bolting and to better plan for their replacements should they choose to leave, Freddie Mac disclosed in a financial filing Tuesday.

Watt told Freddie and Fannie’s boards to limit any changes so that the CEOs’ pay would be within the bottom 25 percent of the market and would exclude bonuses. But executive pay at bailed-out banks and the housing finance giants became an explosive issue after the crisis and remains politically touchy. In 2012, the FHFA capped Fannie and Freddie CEO pay at $600,000 a year after Congress howled at lucrative pay packages being doled out."

https://www.politico.com/story/2015/05/600000-not-enough-for-fannie-freddie-ceos-117660