Previous CEO Mudd keeps pounding away about how he managed Fannie Mae in a mission related public purpose way – he had no choice.

He admitted Fannie raced into Alt-A & Sub-Prime loans – which is ~75% of their losses and a large reason why we own them. Also – he admitted their leverage was 62-70:1 and saw no risk in that – since – it was their mission to create financing for housing for the US.

Commissioner Heather H. Murren, CFA just asked him to justify the millions Mudd made and why he earned them.

She goes on:

How many consultants were engaged to determine your compensation?
2. Plus the Board, plus HR, plus the Regulator.

Do you recall what you paid those firms?
No.

Does $700,000 for one assignment ring a bell?
No. I can get you that.

Did you know, the entire budget for the Regulator of Fannie & Freddie was LESS than the compensation for the top 4 execs at each?

Fannie spent $80M on lobbying from 1998-2005.