Magazine article American Banker

Freddie Mac Shareholders Vote for Stock Plan

Magazine article American Banker

Freddie Mac Shareholders Vote for Stock Plan

Article excerpt

Mclean, Va.-- The Federal Home Loan Mortgage Corp. said shareholders at its annual meeting approved an increase in the number of shares available for use under the Freddie Mac compensation plan.

The plan permits the granting of stock options and awards of restricted stock to directors, officers, and employees. Since 67% of the three million shares authorized for use had been awarded as of Dec. 1, 1991; it was expected that added grants and awards made in 1992 would exceed the remaining number of shares.

The approved increase provides another 4.5 million shares for use under the compensation plan.

the FDIC's early research on this question that's hard to answer."

Another complication:Because a bank's exam willhelp determine how much it will pay for deposit insurance, the tension between bankers and examiners figuresw to grow.

Robert L. Clarke, the former comptroller of the currency, predicted "a real blood bath"at troubled banks as officers fight their examiners over how to classify loans.

"I just think risk-based premiums are going to open up a lot of problems," he said.

James Chessen, chief economist at the American Bankers Association, added: "The financial impact to these ratings tends to place the bankers and the examiner in a very adversarial setting, and I don't think that's good for the banking industry in the long term."

Reginal Differences

Bert Ely, an indistry consultant in Alexandria, Va., said the system should be adjusted for differences in regional economies. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.