Tuesday, May 5, 2015

Watt is separating from his party, Fannie mae #FannieGate

But the Federal Housing Finance Agency, which operates independently of the Obama administration, believes current caps on pay limit the firms' ability to "develop reliable CEO succession plans," FHFA Director Mel Watt said in a statement.

What is going on? SUCCESSION PLANS? Fannie and Freddie will be bankrupted by the US TREASURY within 2 years! What succession is needed, UNLESS.... FHFA knows that Fannie will be here long after FHFA Watt is replaced? Both white house and congress seem to be very angry about this. Why Now, why allow a pay raise? I think it is to prove that Watt is independent and NO ONE can tell him what to do. This is important for when the next President is elected. If it is a republican, all of Watts work will be undone by the next administration. But there is NO WAY the democrats are going to let affordable housing and the 30 year mortgage go away in this country. Fannie Mae was started by democrats! FDR to be precise! 
Democrats used the NUCLEAR option to put Watt in the FHFA! Why? Demarco was not running Fannie mae the way the Democrats wanted him. Enter Watt, a Liberal democrat to the core! 
Again:
new leases on new buildings for 10 years. 
New CEO compensation. 
Affordable housing funded. 
30 year mortgage preserved. 
No changes to G Fees
Watt halted a succession of fee increases implemented by his predecessor to shrink the government-sponsored enterprises’ footprint in the mortgage market. Even with the changes, fees on average remain about twice 2009 levels.
And
It seems to me that Fannie and Freddie are now paying MUCH less to treasury and 
Booking losses on derivatives that can be regained at a later date, but why now in 2015?
is it because Fannie will be a Free company again? Law suit pressure? 
Follow HERA Watt. Its the Law, not the SPSA. 
The SPSA 3rd amendment as signed by Demarco is against the LAW!
Self dealing is still illegal in America! 
NONE THE LESS, I SAY GOOD JOB MR WATT SO FAR!
 
White house:
“The reason these entities are different than some of the financial entities you see in the private sector is they benefit significantly from a backstop that is provided by the taxpayer,” White House press secretary Josh Earnest told reporters Tuesday at a briefing in Washington.

Democrat and Republican senators:

Representative Ed Royce, a California Republican, said in a statement that the potential change could allow the CEOs to make more than $7 million annually and would be “absolutely unconscionable.” He’s planning to introduce a bill Friday to prevent the pay increases. Senator Mark Warner, a Virginia Democrat, said in statement that the plan showed that it’s “long past time for Congress to fix this flawed business model and enact responsible reforms to our housing finance system.”

Treasury:

The Treasury Department “has consistently communicated to FHFA that a change in CEO compensation at Fannie Mae and Freddie Mac is not appropriate, given that taxpayers continue to backstop both enterprises,” Adam Hodge, a spokesman, said in an e-mail. “Ultimately, FHFA, not Treasury, has sole authority over executive compensation at Fannie Mae and Freddie Mac. Nonetheless, Treasury strongly recommends that FHFA continue its existing limits on CEO compensation.”


WASHINGTON, May 5 (Reuters) - The regulator of mortgage finance firms Fannie Mae and Freddie Mac could allow them to raise the pay of their chief executives in order to keep and attract talent at the government-controlled entities, company officials said on Tuesday.
Pay hikes at the top of the two firms are opposed by the U.S. Treasury on grounds that taxpayers continue to backstop the two firms after the government bailed them out in 2008 during the financial crisis.
But the Federal Housing Finance Agency, which operates independently of the Obama administration, believes current caps on pay limit the firms' ability to "develop reliable CEO succession plans," FHFA Director Mel Watt said in a statement.
Freddie Mac and Fannie Mae said they were told by the FHFA they could submit new proposals for executive pay at the firms.
Freddie Mac said in a filing to the Securities and Exchange Commission on Tuesday that the FHFA specified that the firm should not propose a pay increase that would put pay "higher than the 25th percentile of the market."
Egbert L.J. Perry, non-executive chairman of Fannie Mae's boards of directors, said the FHFA communication was "an important and necessary step" for retaining and attracting talented executives.
While FHFA has sole authority over executive compensation at Freddie Mac and Fannie Mae, the Obama administration made clear it wants to keep salary caps in place.
"(The) Treasury strongly recommends that FHFA continue its existing limits on CEO compensation," said Treasury spokesman Adam Hodge.

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