The revolving door at Freddie Mac swung open once again this week as the agency named its fourth CEO since it was placed under federal oversight in 2008.
Donald Layton, a retired JPMorgan Chase executive and former CEO of E*Trade, will take over the top post at the US mortgage supplier later this month. Layton, who worked at Chase for nearly 30 years before retiring in 2004, will replace Charles Haldeman Jr.
The CEO post at Freddie Mac isn’t exactly a desirable position. Congress has put limits on executive pay (Layton is expected to take home around $600,000) and the entire future of Freddie Mac and its sister organization Fannie Mae is a little foggy. The government, which bailed out Fannie and Freddie with hundreds of millions in tax payer money, is considering eliminating the two agencies all together.
But Layton seems to be the charitable kind. Plus, he has experience turning things around at failing companies. Most recently he has been served as a director of troubled insurer AIG. He was named to that position by the US Treasury. So heading up Freddie Mac seems to be a good fit for the man who isn’t too concerned about pulling in big bucks at a healthy company (he’s all ready done that.) He even told CBS that he views his new position at Freddie Mac as “public service.”
Leading Freddie Mac is going to be a challenge and Layton has said it is important that the organization runs well. Freddie and Fannie own or guarantee the majority of all mortgages in the US.
So what’s his strategy? In an interview with American Banker Layton said he will focus on the “nuts and bolts” of the agency in order to improve efficiency. He also wants to get Freddie out of government conservatorship as soon as possible. Good luck, Mr. Layton.