The Wall Street Journal has just reported that Michael J Williams, the Chief Operating Officer of Fannie Mae, has just been promoted to the position of president and CEO. He will evidently not will not receive a raise this year along with his promotion. He will have to be satisfied with a base salary of $676,000 and incentives of about $1.04 million.
He has been with Fannie Mae since 1991, making him a part of the rise and fall of Fannie Mae, and a large part of the billion dollar losses the company has suffered in the credit crash since the fateful decision to purchase significant amounts of subprime and Alt A mortgages.
As COO since 2005, he would have been instrumental in the decision to purchase these non conforming loans. It was this decision that dragged down the conventional mortgage market.
Business Day offers some more details.
It still bothers me that the people that led the charge to crash the economy are the ones that we must pay such high "retention bonuses" in order to retain their essential services.
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And why are these fat cats not being treated as criminals when what they have done is a crime?
Virginia,
So good to hear from you. Missed it. Yes you are right. It would make more sense to discuss whether they should be demoted, fired, or jailed. Not whether they should be promoted or given a raise.
My thoughts anyway.
Richard