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Obama wants review of Fannie-Freddie CEO pay

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I'm normally skeptical of politicians wading into issues of executive compensation, but I think Barack Obama and Senators Charles Schumer and Jack Reed are right to ask for a government review of the departure packages for

Outgoing Freddie Mae (NYSE: FRE) CEO Richard Syron and Fannie Mae's (NYSE: FNM) Daniel Mudd could walk away with $14 million and $9.2 million respectively -- a far cry from the 9-digit packages that several top executives at the big banks left with, but still an awful lot of money for running companies into the ground to the point where a taxpayer funded bailout was necessary.

In a letter to Treasury Secretary Henry Paulson and Federal Housing Finance Agency director James Lockhart, Obama asked that (subscription required) the takeover deal "void any such inappropriate windfall payments to outgoing CEOs and senior management."

Is it political grandstanding? Of course, but it's also right on. Syron and Mudd should leave Freddie and Fannie without two nickels to rub together and if things are so dire that we have to fund a bailout, there shouldn't be enough left to pay outgoing CEOs multi-million dollar severance packages.

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Last updated: July 11, 2009: 01:02 PM

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