An 18-year veteran has been tapped to run Fannie Mae as the current chief joins the Obama administration. Executives at one wholesale lender are resigning over litigation tied to the failed company they previously worked for, and two executives who previously worked at financial firms have died.
Herbert M. Allison Jr., who replaced Daniel H. Mudd as president and chief executive officer of Fannie when it was seized by the Federal Housing Finance Agency in September 2008, was nominated by President Barack Obama to be Assistant Secretary for Financial Stability, a White House statement Friday said. Allison will also hold the title of counselor to the secretary and serve as an advisor on policy matters. He replaces Neel Kashkari, who was hired under the Bush administration.
In the new post, Allison will oversee the $700 billion Troubled Asset Relief Program.
Allison was the chairman, president and CEO of TIAA-CREF between 2002 and 2008, when he retired. He was also the national finance chairman for Sen. John McCain's presidential campaign in 2000.
Replacing Allison at Fannie will be Michael J. Williams, the Washington, D.C.-based company announced today. Williams was promoted from his role as Fannie's chief operating officer.
"In the wake of the market downturn, he oversaw the bolstering and restructuring of the company's foreclosure-prevention and loss mitigation operations, and this year he has led the company's efforts to carry out the administration's Making Home Affordable loan refinance and modification initiatives," the statement said. "Williams has also managed and executed other large-scale initiatives at Fannie Mae in the past, including the company's restatement, reorganization and transition to conservatorship."
Before joining the secondary lender in 1991, Williams worked at Peat Marwick and the Dupont Company. He holds a master's degree in business administration from Drexel University.
A statement from Fannie's regulator, FHFA Director James B. Lockhart, indicated that Williams "was responsible for implementing the corrective actions that led this agency to lift the consent order stemming from our special examination into accounting and management problems at the enterprise."
Across town in McLean, Va., Capital One Bank said last week that James Jackson will replace Carol Drexel to manage the company's 1,000 branches. Jackson previously worked at Bank of America Corp.
Gerald Baker, who was previously president and CEO of First Horizon National Corp. and First Tennessee Bank, NA, has joined Building Champions Inc. as an executive coach, a press release last week said.
Former executives of First Magnus Financial Corp., which failed in August 2007, have left StoneWater Mortgage Corp., which was launched last year, Inside Tucson Business reported Friday. StoneWater -- which employs around 250 people, serves 1,400 mortgage brokers and funded $100 million in March -- was suffering from a $1 billion lawsuit filed against the executives by the bankruptcy trustee for First Magnus.
Former Freddie Mac executive David G. Herold, 83, died of congestive heart failure April 4 at his home, the Washington Post reported Friday.
Michael Robert Wise, who ran the failed Silverado Banking Savings and Loan in Colorado, jumped to his death this month from the top floor of parking garage at Tampa International Airport, the Wall Street Journal reported. A little over a decade after Silverado collapsed in 1988, Wise, 64, was sentenced to more than three years' in prison for stealing $9 million from investors after his stint at Silverado.
Wise's brief tenure at CFIC Home Mortgage reportedly contributed to the company's collapse in September 2007. He reportedly had been reduced to surviving off of peanut butter and jelly.