Fannie Mae announces management changes

Embattled mortgage lender Fannie Mae makes big changes at the top

WASHINGTON, DC – Fannie Mae has announced senior management changes as part of its capital management and loss reduction plan. The reshuffle comes as speculation intensifies over the possibility of an imminent federal bail-out of Fannie Mae and Freddie Mac, the two US government-sponsored mortgage lenders, which hold over $5 trillion in struggling US home loans.

Fannie announced Peter Niculescu will become chief business officer, David Hisey chief financial officer and Michael Shaw chief risk officer. Niculescu replaces Robert Levin, who will retire after 27 years with the organisation. He will oversee the firm’s business divisions and Fannie Mae’s urgent capital management and credit loss reduction plan.

Shaw will oversee credit, market, counterparty and operational risk, and replaces Enrico Dallavecchia in the role of chief risk officer, who is leaving the firm. Hisey, a previous senior vice-president and controller, replaces Stephen Swad. The circumstances of Swad’s departure are unknown, although he has reportedly left to pursue opportunities in private equity, only a year after joining Fannie in early 2007.