Fannie, Freddie Execs Improperly Paid Big Bucks

Government hasn't been transparent enough, report complains

By Kevin Spak,  Newser Staff

Posted Apr 1, 2011 9:38 AM CDT

(Newser) – The federal government has improperly paid the CEOs of Fannie Mae and Freddie Mac huge salaries while the housing giants have been under government control, the Inspector General of the Federal Housing Finance Agency concludes in a new report. The CEOs were paid a total of $17.1 million in 2009 and 2010, the first two years of full government control, according to Reuters. The top six execs raked in $35.4 million during that time.

The report says that the FHFA never considered factors that could have reduced that payout, and paid the salaries without proper analysis. “FHFA does not provide sufficient transparency to the public,” the report complains, revealing that the FHFA has no written procedure for evaluating executive performance or compensation. Since 2008, the two mortgage giants have taken $130 billion in direct taxpayer aid.

The headquarters of Fannie Mae are seen October 21, 2010 in Washington, DC.   (Getty Images)
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