The New York Times reports that Fannie Mae and Freddie Mac are struggling to replace senior and midlevel managers, who are either fleeing or being pushed out of the mortgage finance companies. The government has invested billions into Fannie and Freddie and are counting on them to rescue the floundering housing market, but the companies don't even have their own houses in order. Freddie Mac is currently looking for a chief executive, a chief operating officer and a chief financial officer, while over at Fannie Mae the offices of a general counsel, a chief risk officer and a chief technology officer all remain vacant.
As you might imagine, all this uncertainty has made it that much tougher to do business. Morale has dipped and recruiting has slowed. Quoth the NYT:
Where it used to be a badge of honor to work at Fannie and Freddie, they are now largely viewed in Washington with disdain and anger, because the companies are blamed for contributing to the economic crisis. And though they have cut the size of their bonuses drastically and eliminated some perks, the companies have come under withering criticism from some senior members of Congress for continuing to offer bonuses at all.
So why should you care that Fannie and Freddie lack the management necessary to keep their companies moving when they're supposed to be the ones breathing life back into the cesspit that is the American housing market?
I mean, you're looking for work, aren't you?
Offices Go Vacant at Fannie and Freddie [New York Times]
--Posted by Steven Schiff, Vault News & Commentary
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