The restructuring of Fannie Mae has begun, about 10 years too late, but it has begun. Both Fannie and Freddie have been the place where loyal political flacks have gone to get rich. Jim Johnson, Jamie Gorelick, and Franklin Raines all made 10’s of millions running the lending institutions into the ground.

And everyone knew. George Bush 5 years ago asked for an overhaul of the organization but the company launched a lobbying attack and Congress backed down.

Now with the company in shambles and the pensions of millions of Americans lighter, the company has finally been forced to come clean.

The executives and boards of both companies are being replaced. Herbert Allison, the former head of the TIAA-CREF retirement investment fund, was immediately selected to head Fannie Mae, and David Moffett, a former vice chairman of US Bancorp, was chosen to head Freddie Mac.

The Fannie Mae executives whose resignations were announced Friday are Chief Business Officer Peter Niculescu, Executive Vice President and General Counsel Beth Wilkinson, Executive Vice President and Chief Information Officer Rahul Merchant, and Senior Vice President for Government and Industry Relations Duane Duncan.

In addition, Fannie Mae said its three lines of business — single-family mortgage guaranty, capital markets, and housing and community development — and their top managers will report directly to Allison, who is president and CEO. The technology and operations division will report to Chief Operating Officer Michael Willliams, while the structure of the government and industry relations division is under review, the company said. via Yahoo! News.

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