Too little, too late?
Fannie Mae shook up its senior management in a move it said was designed to "drive" the mortgage company’s efforts to conserve capital and contain a surge in costs stemming from defaults by homeowners.
The company, struggling with losses that have called into question its ability to survive without a government bailout, announced the departures of Robert Levin, a 27-year veteran who was chief business officer, and two executives who joined within the past two years: Stephen Swad, who was chief financial officer; and Enrico Dallavecchia, who was chief risk officer.
Fannie promoted Peter Niculescu to chief business officer with broad responsibilities for the businesses of providing guarantees on mortgage securities and investing in such securities, as well as for raising capital and managing debt needs. Mr. Niculescu, 48 years old, joined Fannie in 1999 after working as a top bond-market analyst and strategist for Goldman Sachs. In recent years, he has been responsible for managing Fannie’s holdings of mortgages and related securities, which currently total about $758 billion.
Fannie also named David Hisey, 48, formerly controller, as chief financial officer. Michael Shaw, 61, formerly a senior vice president, becomes chief risk officer.
Discuss . . .
Fannie Names New Officers in Shake-Up
JAMES R. HAGERTY and APARAJITA SAHA-BUBNA
WSJ, August 28, 2008