Sunday, May 13, 2012

Former adviser to biggest Wall St. lobby grp., vice chair of JP Morgan Chase, recent board member of AIG, Donald Layton named new CEO of Freddie Mac

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5/10/12, "Freddie Mac names former E*Trade Financial CEO Layton as new chief executive," AP, M. Gordon

"Layton, 62, spent 30 years working at JPMorgan Chase and its predecessor companies. He also was a senior adviser to the Securities Industry and Financial Markets Association, Wall Street's biggest lobbying group....

Freddie, based in McLean, Va., and Washington-based Fannie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. Along with several federal agencies, they backed nearly 90 per cent of new mortgages over the past year....

Pressure continues on the government to eliminate Fannie and Freddie and reduce taxpayers' exposure to risk. The Treasury Department put forward a plan last year to slowly dissolve the companies, though that process could take years. Abolishing Fannie and Freddie would transform how homes are bought and redefine who can afford them."...

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5/10/12, "US Treasury sells $5.75B more of AIG stock," AP via CBS News

"Also on Thursday, AIG said Donald Layton has resigned from its board of directors effective at the beginning of AIG's annual shareholder meeting on May 16. He resigned because he was appointed CEO of Freddie Mac. He has served on AIG's board since 2010."...

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One-time JP Morgan vice chairman "
Layton still has financial ties to JPMorgan, such as stock options and deferred compensation, and Freddie Mac does extensive business with JPMorgan."...

5/10/12, "
Freddie Mac names longtime JPMorgan official Donald Layton chief executive," Washington Post, Hilzenrath

"Freddie Mac, the mortgage-funding company operating as a ward of the government, is getting its fourth leader since it was placed under federal conservatorship during the financial meltdown of 2008.

Donald H. Layton, 62, who spent almost 30 years at JPMorgan Chase and its predecessor firms and rose to vice chairman, will become Freddie Mac’s chief executive later this month, the company said Thursday....

Layton still has financial ties to JPMorgan, such as stock options and deferred compensation, and Freddie Mac does extensive business with JPMorgan, the company said in a regulatory filing Thursday. To avoid potential conflicts of interest, the company said, Layton has agreed to recuse himself from matters related to JPMorgan “in specified circumstances.”

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AIG still owes $29 billion to US taxpayer via TARP.

5/10/12, "AIG Announces the U.S. Department of the Treasury Completes Offering of AIG Common Stock," Business Wire

"American International Group, Inc. (NYSE: AIG) announced today the completion of a registered public offering of 188,524,589 shares (including 24,590,163 shares sold pursuant to the exercise in full of the underwriters’ over-allotment option) of AIG common stock, par value $2.50 per share, by the U.S. Department of the Treasury (“Treasury”) as the selling shareholder. AIG purchased 65,573,770 shares of AIG common stock in the offering at the public offering price of $30.50 per share for an aggregate purchase amount of approximately $2.0 billion. The exercise of the over-allotment option increases Treasury’s proceeds from the sale to approximately $5.75 billion. AIG did not receive any of the proceeds from the sale of the shares of AIG common stock by Treasury.

The offering reduced Treasury’s remaining TARP investment in AIG to approximately $29 billion."...

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