Fannie Mae CEO to step down by end of year

Fannie Mae’s chief executive is slated to leave the mortgage-finance giant by year’s end amid a broader leadership overhaul that would put day-to-day operations in the hands of the company’s current finance chief.

Timothy J. Mayopoulos, a financial-services lawyer who as CEO led the turnaround of Fannie after the financial crisis, would remain chief executive for now and yield the president title to David Benson, Fannie’s chief financial officer.

Meanwhile, Celeste Brown, who joined Fannie last year from Morgan Stanley, was promoted to executive vice president and chief financial officer.

The promotions are effective Aug. 6, Fannie said Monday. Fannie, which has been under government conservatorship since the financial crisis, said it is searching for a new CEO.

"During Tim’s tenure as CEO, Fannie Mae has been profitable on an annual basis, paid the Treasury approximately $167 billion in dividends, and reduced risk to taxpayers," board Chairman Egbert L.J. Perry said in a statement.

Mr. Mayopoulos, who like most of Fannie’s upper ranks hails from Wall Street, joined Fannie in 2009 as general counsel and later added the position of chief administrative officer. He was promoted to CEO in 2012.

He came under scrutiny last year after it was revealed he had been in a romantic relationship with an executive at a U.S. bank. Mr. Mayopoulos had disclosed the relationship to the company’s compliance and ethics office, which found no conflict of interest under Fannie’s corporate policies, The Wall Street Journal reported.

Ultimately, Federal Housing Finance Agency Director Melvin Watt stood by Mr. Mayopoulos, saying he had "complete confidence" in the CEO.

Fannie and its smaller sibling, Freddie Mac, were placed into conservatorship by the U.S. government during the height of the financial crisis. All told, Fannie and Freddie received some $187 billion from the government and have since returned some $256 billion to taxpayers.

Write to Maria Armental at [email protected]

Source: Read Full Article