Fannie, Freddie CEOs denied exit bonuses - report (JoAnne Allen)

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Freddie Mac

WASHINGTON, Sept 14 (Reuters) - U.S. regulators will not allow mortgage giants Fannie Mae and Freddie Mac to pay their departing chief executives multimillion-dollar severance packages outlined in their contracts, The Washington Post reported on Sunday.

The Federal Housing Finance Agency (FHFA) has notified former Fannie Mae Chief Executive Officer Daniel Mudd and former Freddie Mac Chief Executive Officer Richard Syron that the so-called "golden parachutes" will not be paid, the Post reported, citing an agency statement.

{xtypo_quote_right} The golden parachute payments drew criticism from Democrats, including presidential contender Barack Obama, who said such a windfall was unacceptable and the government's failure to block the packages violated the public's trust. {/xtypo_quote_right}

Mudd and Syron were entitled to combined pay and bonus packages worth about $24 million as part of the government's plan to restructure the troubled companies, which own or guarantee about half of the $11 trillion outstanding home mortgages in the United States.

The Post said a spokesman for Syron had no immediate comment and a lawyer representing Mudd did not return a phone call or e-mail.

The U.S. government took over the two mortgage giants last Sunday and replaced its management as part of a plan to recapitalize the two firms.