Federal Housing Finance Agency (FHFA) Mel Watt defended his decision to approve the pay hikes, which will raise the Fannie and Freddie CEOs' pay from $600,000 to $4 million, as vital to "promote CEO retention, allow reliable succession planning and ensure the continuity, efficiency and stability" now that both companies have returned to financial health. (Associated Press)
Edward DeMarco, acting director of the Federal Housing Finance Agency, says reshaping Fannie Mae and Freddie Mac requires spreading lending risks. (Associated Press)