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Fannie Mae CEO Michael J Williams resigns
Michael J. Williams was appointed CEO of Fannie Mae after the government bailout in 2008.
Fannie Mae’s headquarters in the nation’s capital are seen November 9, 2011 in Washington, DC. Citing the rise in defaults on loans it has guranteed, the government-controlled mortgage giant is asking the federal government for $7.8 billion in aid to covers its losses in the in the third quarter of FY 2011. Fannie has received $112.6 billion so far from the Treasury Department – the most expensive bailout of a single company.
Chip Somodevilla
Fannie Mae’s CEO Michael J. Williams stepped down from his position on Tuesday. He was appointed to the job in 2009 after the company was bailed out by the federal government.
According to a press release from the mortgage giant, Williams will continue as CEO and director until Fannie Mae’s board of directors names a successor. He will then leave the company.
“As CEO, I have focused the company on providing the necessary funding to support sustainable homeownership and quality affordable housing; creating the solutions needed to stabilize the market and help homeowners in distress; and building a strong new leadership team that can move the company and the industry forward,” said Williams, in the press release.
Read more at GlobalPost: SEC sues Fannie Mae and Freddie Mac executives for fraud
“I decided the time is right to turn over the reins to a new leader. As I told our employees today, I am extremely proud of what we have achieved together, and I am confident that they will continue to make a positive difference,” he said.
Only three months ago, Fannie Mae’s sibling, Freddie Mac, announced its chief executive, Charles E. Haldeman, Jr., planned to leave his position next year, too, the Wall Street Journal reported. Now the government must scramble to find leader for both of these institutions.
“On behalf of the board of directors, I want to extend our gratitude to Mike for his tireless dedication to Fannie Mae and especially his exemplary service as its leader through three extremely challenging years,” said Philip A. Laskawy, Chairman, in a press release. “As a result of Mike’s leadership, Fannie Mae is a better company and our country benefits from a stronger housing finance system.”
Williams, 53, first joined Fannie Mae in 1991, the BBC reported. He is the second CEO to leave Fannie Mae since the government took it over, the WSJ reported.
Read more at GlobalPost: Fannie Mae seeks $7.8 billion in additional bailout
Fannie Mae and Freddie Mac were rescued by the government in September 2008, after both firms absorbed huge losses on risky loans that could have sunk the companies, the Associated Press reported. A government regulator has controlled both companies since then.
Due to the government bailout in 2008, both mortgage companies have cost taxpayers $151 billion and the housing market continues to remain weak.