Replies to post #4631 on Stock Room

[roger wilco]

Fannie Mae Taps Senior Executive To Be New CEO

By Zachary A. Goldfarb
Washington Post Staff Writer
Tuesday, April 21, 2009

Fannie Mae announced yesterday that Michael J. Williams, one of the few senior executives to remain with the mortgage finance giant after its government takeover last year, will become the new chief executive.

Williams, previously chief operating officer, replaces Herbert M. Allison Jr., who has been tapped by the Obama administration to run the Treasury Department's financial recovery program.

For the past few months, Williams has been running many of the company's programs aimed at bolstering the housing market by modifying mortgages, refinancing home loans and taking steps to avert foreclosures. His duties include leading a conference call at 8 each morning to steer efforts to help struggling homeowners.

"We need to keep the momentum going," he said in an interview.

Reviving the housing market and stopping foreclosures are "the biggest thing we're facing right now in both the market and in the company."

Williams, an 18-year firm veteran, has overseen key operations at Fannie Mae, including the company's multibillion dollar restatement of its earnings after it was accused in 2004 by the Securities and Exchange Commission of inflating profits.

"Mike brings a steady hand, extensive experience and a deep understanding of the company and the housing and financial markets to his new role," Fannie Mae Chairman Philip A. Laskawy said.

Even as chief executive, Williams is not his own boss. He largely answers to Federal Housing Finance Agency Director James B. Lockhart III, who takes his cues from the Treasury Department.
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Fannie Mae and Freddie Mac have been carrying out large parts of the Obama administration's housing recovery program. They must consult their regulator on matters that range from the very important, such as pricing for mortgages, to the mundane, such as appearing at conferences.

Freddie Mac's government-appointed chief executive, David Moffett, quit last month after squabbling with the regulator about its tight grip on company affairs. His temporary replacement is John A. Koskinen, who had been serving as Freddie Mac's chairman. No permanent successor has been named.

Williams said he understands that his company must now answer to "our customers, the government and the market."

Williams and three other executives were the subject of controversy on Capitol Hill last month when lawmakers complained that employees at firms receiving federal bailout money -- Fannie has gotten $15 billion -- were

receiving bonuses.

Some lawmakers, including House Financial Services Committee Chairman Barney Frank (D-Mass.), have called on Fannie Mae and Freddie Mac not to make any retention payments.

Williams is in line for a $1.3 million bonus under his previous arrangement with the company. He makes a salary of $676,000, and Fannie Mae said his income won't rise in his new job.

Allison, Williams's predecessor, is slated to become the assistant Treasury secretary in charge of financial stability, who runs the $700 billion Troubled Assets Relief Program.