Fannie Execs Liable for $22M in Bonuses?

Fannie Mae executives may have to return at least $22 million worth of bonuses dating back to 2001 if Rep. Richard Baker, R-La., gets his way.Rep. Baker, chairman of the House Financial Services subcommittee on government-sponsored enterprises, has asked the Office of Federal Housing Enterprise Oversight to "recapture" past bonus payments that were tied to the GSE's earnings. Fannie is expected to restate earnings dating back to 2001 by $9 billion. That means past bonuses paid to all executives would be based on earnings that, in retrospect, were not met. According to an analysis by MortgageWire of past proxy statements, recently ousted company chairman/CEO Franklin Raines and chief financial officer Tim Howard would have to return $10.5 million and $2.6 million, respectively. Executives still with the company who might be affected include interim chief executive officer Dan Mudd ($3.2 million in bonus money), executive vice president Thomas Donilon ($1.9 million), and interim CFO Rob Levin ($2.1 million). A Fannie spokeswoman declined to comment. Fannie Mae can be found online at http://www.fanniemae.com.