Baker Links Fannie Lobbying to Exec Pay

Fannie Mae has fought higher affordable-housing goals and tougher regulation because they could have reduced earnings and interfered with executive compensation and bonuses, according to Rep. Richard Baker, R-La.As a result of OFHEO's findings that Fannie ignored accounting standards and manipulated earnings, Rep. Baker said he is going to release a list of top Fannie Mae executives and their compensation going back several years. "As a result of abhorrent accounting practices, executives have been able to award themselves bonuses they did not earn and did not deserve," he said. "For that reason alone, disclosure of where the money went is highly appropriate." Last year, the chairman of the House Financial Services subcommittee on government-sponsored enterprises received a list from the Office of Federal Housing Enterprise Oversight of the compensation paid to Fannie executives. However, Fannie Mae retained attorney Kenneth Starr, who warned Rep. Baker that he could be sued if the compensation information were publicly released. Rep. Baker said he would release the compensation list at the end of the subcommittee's Oct. 6 hearing, at which Fannie chairman and chief executive Franklin Raines was scheduled to testify on the OFHEO report. A Fannie spokesman deferred comment on Rep. Baker's remarks until after Mr. Raines' testimony.