Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Fannie Mae CEO steps down during troubled times

Fannie Mae CEO on his way out

Today, after 20 years with the organization, Fannie Mae said in a statement that CEO Michael Williams is resigning after taking over as President and CEO in 2009. Williams will remain in the CEO role until Fannie Mae’s Board of Directors names a successor. Rumors have not yet leaked as to who that may be.

“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 Fannie Mae Chairman, Philip A. Laskawy. “As a result of Mike’s leadership, Fannie Mae is a better company and our country benefits from a stronger housing finance system.”

The government-sponsored entity was put into conservatorship in 2008 to save it from failing, and posted losses of $5.1 billion in the third quarter of 2011 and requested $7.8 billion more in taxpayer support from the Treasury Department, the same month that they were criticized for wasteful spending and for awarding executives exorbitant bonuses despite struggling to perform without further governmental aide.

In December, the Securities and Exchange Commission charged six former Fannie Mae and Freddie Mac executives with civil fraud for misrepresenting their holdings of high-risk mortgage loans, although Williams has come out clean, former Fannie Mae CEO Daniel Mudd was charged. Additionally, two former CEOs of Fannie Mae, James A. Johnson and Franklin Raines were named as recipients of low-cost “Friends of Angelo” loans from Countrywide, a conflict of interest for the two.

Advertisement. Scroll to continue reading.

Why Williams resigned

Fannie Mae’s statement today provided no reason for Williams’ leaving, but he did say generically, ” I decided the time is right to turn over the reins to a new leader.” Williams is leaving behind a massive organization that continues to have financial woes.

Williams’ resignation is no surprise as last fall, Freddie Mac CEO Ed Haldeman announced that he would retire this year, and a hand full of Freddie executives are either reaching mandatory retirement age, retiring voluntarily, or leaving the organization, also without a successor.

The large organizations are in a period of transition, marred by poor performance, financial hemorrhaging, massive salaries and bonuses, wasteful spending and requests for more extensive taxpayer assistance, and a leadership exodus is to be expected – look for more executives to step down this year.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.



  1. Houston Real Estate Guy

    January 10, 2012 at 8:38 pm

    Thanks for the great article and heads up about the step down. I guess it was just a matter of time.

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

We all know and love the company NASA for their space exploration efforts, but how much of an economic impact do they have? Turns...

Business Finance

Another large spike in the consumer price index isn't good news for the economy, and the context of the data is more complicated this...

Business Finance

With a second consecutive quarter of declining GDP data, we are officially in a recession - are we?

Business News

(BUSINESS NEWS) Heads up! Your beloved adult beverage of choice may be getting pricier now that COVID inflation abounds.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.