More Takes On The Fannie Mae/Freddie Mac Move
From Zillow who says look for a cut in interest rates this week… (but will even that help sales??? It’s a credit crunch… low rates for a select few who can jump through the lenders’ higher hoops…) and Forbes., also positive but no mention of rate cuts. Full disclosure: I own Fannie Mae shares and can kiss them goodbye. Forbes says “no accounting wrongdoing” but that the companies may have overstated their capital resources. If you or I overstate income or Real Estate values on a financial statement, that is considered illegal. These people had a fiduciary duty to shareholders. And as a shareholder about to lose money, it pains me further to learn that Freddie’s former CEO could walk with millions, as the Wall Street Journal reported –
“At Fannie, Herb Allison, who formerly served as chairman of the investment company TIAA-CREF, succeeds Daniel Mudd. Freddie’s chief executive, Richard Syron, was succeeded by David Moffett, who has been vice chairman and chief financial officer of U.S. Bancorp.
Potentially, Mr. Syron could walk away with an exit package totaling as much as $15 million, said David Schmidt, a senior consultant at James F. Reda & Associates LLC, a compensation consulting concern in New York. That includes a pension and deferred compensation, about $3.7 million in severance pay and a possible payment of $8.8 million to compensate for forfeiting recent equity grants. A Freddie spokesman said Mr. Syron had said he doesn’t “anticipate receiving nearly that much.”
What severance pay? Take that pension and pay back shareholders! Ask me, neither should get a penny.
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