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Sunday, July 5, 
12:12 am

CEO Mudd slings reform, Fannie Mae polishes up management

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USHousingCrisis.pngIt looks like Fannie Mae's management is cleaning house. CEO Dan Mudd is polishing up his team for top management that will be, "responsible for meeting the dual objectives of conserving capital and controlling credit losses while Fannie Mae continues to provide crucial liquidity to the U.S. housing and mortgage markets."


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 Here's a list of the new hires:
  •  Peter Niculescu, once managing director and co-head of fixed-income research and strategy for Goldman, Sachs & Co., was named chief business officer, responsible for three divisions -- single-family mortgage guaranty, capital markets and housing and community development
  • David Hisey was named EVP and chief financial officer
  • Michael Shaw, of J.P. Morgan Chase & Co. pedigree, became chief risk officer
  • David Benson, who has been head of e-commerce in the fixed-income division at Merrill Lynch & Co., was promoted to executive vice president, capital markets and treasury
And there are some checkouts as well:
  • EVP and current chief business officer, Robert Levin, will retire. He checks out after 27 years with Fannie Mae
  • Current CFO Stephen Swad, who joined Fannie Mae in spring 2007, chose to leave the company to pursue other opportunities in private equity
  • Current chief risk officer, Enrico Dallavecchia, intends to leave the company to pursue opportunities in finance and risk management
The board said in a statement it was firmly committed to Mudd, the management restructuring and the strategic objectives around capital and credit he set forth on Aug. 8, when the company announced dismal second-quarter results.

The announcement comes as Fannie Mae sold $2 billion in short-term debt Wednesday, although at higher yields than in recent auctions, MarketWatch notes. The lender also announced its JV with REIT Mid-America Apartment Communities Inc. would stop making acquisitions. Fannie shares were up after trading Wednesday, which could quell rumors the mortgage giant may need a government bailout. - Baz Hiralal

Fannie Mae CEO Dan Mudd Announces Management Restructuring
Fannie Mae halts purchases for Mid-America Fund
Fannie Rises as Merrill Calls Bailout Talk Premature



Comments

From: Sam Ralph,


What in God's name is Fannie Mae thinking. HIRING WITHIN?

To think of this takes me back to when John Gotti took over for Paul Castalano. What are you people thinking? Is Andy Fastow on your list of potential hiree's?


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