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Ex-Fannie boss Mudd has regrets
30 Oct 2008Former Fannie Mae chief executive Daniel Mudd says he wished he said "no" to more of the things Fannie was asked to do, but did not apologise for any role he may have had in the collapse of the mortgage finance giant.
Mudd and his opposite number at Freddie Mac, Richard Syron, were thrown out after US regulators took management control of the two companies early last month.
Mudd says competing demands made on Fannie caused its failure.
"We were asked or required to expand lending, to conserve capital while providing liquidity, to meet housing goals...to serve shareholders and homeowners alike," Mudd told the Wall Street Journal. "I should have gone to the government and gotten a clear answer to the question: What do you want more capital or more lending?" he added.
Reader views (1)
His first duty should have been to say that the TYPE of lending he was being asked to do was endangering the company, but his, extortionate, bonuses were based on the profits made this year, not the losses made in future years.
- K Mccarthy, Teddington, England, 30/10/2008 15:31
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