15 Sep 2008

Regulators rule out golden handshakes

9:08 pm on 15 September 2008

United States regulators are refusing to allow mortgage giants Fannie Mae and Freddie Mac to pay their departing chief executives multi-million-dollar severance packages.

According to The Washington Post, the Federal Housing Finance Agency has notified the two former chief executives they will not be getting "golden handshakes".

The pair were entitled to combined pay and bonus packages worth $US24 million.

The US government took over the two mortgage giants a week ago and replaced their management as part of a plan to stop their collapse.