FEDERAL HOUSING FINANCE AGENCY AGREES TO CANCEL SEPARATION PAYMENTS FOR DANIEL MUDD AND RICHARD SYRON

WASHINGTON, D.C. – Congresswoman Nancy Boyda (Kansas Second District) applauds yesterday’s announcement by the Federal Housing Finance Agency (FHFA) that it would cancel millions in severance payments to the former CEOs of Fannie Mae and Freddie Mac.

Last week, Rep. Boyda wrote a letter with New Hampshire Congressman Paul Hodes to U.S. Treasury Secretary Henry Paulson. Their letter asked Secretary Paulson to ensure that taxpayer dollars not go to reward Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron for leading their companies into failure.

In their letter, Representatives Boyda and Hodes said, “The investors and the American taxpayers have already suffered the losses from this failure. The failed management must also share in these losses. More importantly, nobody should be getting rich off of taxpayer dollars.”

Representatives Boyda and Hodes called the tens of millions in golden parachutes for Mudd and Syron “outrageous” and said, “If these companies were in such serious financial difficulty that they needed help to carry out their mission, they certainly don’t have money to spare on golden parachutes.”

After learning of the ruling by the Federal Housing Finance Agency, Boyda said, “It was the right decision to make. The business practices of these two men pushed Fannie Mae and Freddie Mac into receivership. In no way should they profit from the misfortune of others.”