The multi-million dollar exit packages for ousted execs from Freddie Mae and Fannie Mac should be rescinded. - Inspired by Barack Obama

Three top Democrats, including presidential nominee Senator Barack Obama, called for federal housing regulators to rescind exit packages from the ousted leaders of Fannie Mae and Freddie Mac on Tuesday. The buy-out has become a hot issue in the presidential campaign.

“Under no circumstances should the executives of these institutions earn a windfall at a time when the U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources,” Senator Obama wrote in a letter to Treasury Secretary Henry M. Paulson Jr. and the director of the Federal Housing Finance Agency, the new regulator for Fannie and Freddie.

The New York Times reports: “Under the terms of his employment contract, [Daniel H. Mudd of Fannie Mae] could receive a package worth up to $9.3 million if his dismissal is deemed to be “without cause,” according to an analysis by the consulting firm James F. Reda & Associates. That is on top of $12.4 million in salary, bonuses and profits after cashing in stock options he has taken home since becoming chief executive in 2004, according to Equilar research...

[Richard F. Syron of Freddie Mac] could receive an exit package of at least $14.1 million on top of the $17.1 million he has taken home in cash, bonuses and stock option profits since becoming chief executive in 2003.”