Ousted Fannie Execs Get Some Compensation

The Office of Federal Housing Enterprise Oversight has given Fannie Mae the green light to pay initial pension and deferred compensation benefits to its recently ousted chairman/CEO Franklin Raines and chief financial officer Timothy Howard.However, the order does not include stock options, 2004 bonuses, or other incentive pay. OFHEO also said the approval on initial payments will not affect its ability to seek restitution against Messrs. Raines and Howard should it come to that. At a Congressional hearing Wednesday morning Rep. Richard Baker (R-La.), who oversees the GSE subcommittee said OFHEO, "does not, apparently, have the authority to unilaterally act on the behalf of tax payers." The Congressman added that litigation might be "required after the fact to reclaim" what he called "ill-gotten gains." Messrs. Raines and Howard are entitled to receive monthly pensions of $114,393, and $36,071 respectively.