Frankly, this is one of the more encouraging stories about business we’ve read in a long time.
NYT reports that Fannie (FNM) and Freddie (FRE) — long a place where the politically connected could get huge salaries for doing nothing (at best) — are suffering from brain drain. Between the scrutiny over pay, the hate from the media and the opportunity to work at somewhere a bit more dynamic and interesting, employees are fleeing by the droves.
This article doesn’t sound like it was fed to the Times by some angry executive who wants to lash out at the government for ruining the companies — we’ve read versions of that story about AIG in the Journal several times.
Rather, it sounds like the well-intentioned bureaucrats who run and regulate the GSEs genuinely think there’s a problem with so many employees vacating. They’re especially concerned, since the administration has expanded the role of Fannie and Freddie to help fight the housing crisis. That part continues to blow our mind, that after all this, the folks upstairs believe that the problem is that Fannie and Freddie currently aren’t doing enough.
Maybe they should listen to their own employees, who in the worst job market in decades, are fleeing ship.
Business Insider Emails & Alerts
Site highlights each day to your inbox.