This is exactly what happens when the Government gets involved with something: lack of oversight, hypocrisy, abuse, and corruption.
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WASHINGTON (AP) — Fannie Mae is planning to pay retention bonuses of as much as $611,000 each to several top executives of the government-controlled mortgage finance titan. Sibling company Freddie Mac is planning similar awards.
Fannie Mae disclosed in a recent filing with the Securities and Exchange Commission that it’s planning bonuses of $470,000 to $611,000 for four top executives, on top of their base salaries this year.
Freddie Mac has a similar retention plan in place, but has yet to disclose how much money top executives are in line to receive.
Both companies were seized by federal regulators last fall. Fannie has requested $15.2 billion in government aid, while Freddie has asked for nearly $31 billion in additional aid on top of the $13.8 billion it received last year.
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As is now to be expected from Government thugs, James Lockhart, the director for the Federal Housing Finance Agency, who was nominated by President Bush to that position and confirmed by the Senate in June 2006, sees nothing wrong with this and defends the bonus plan.
The Government should stay out of business. The good companies would succeed, and horrible companies would fail.
Tags: Bonuses, Corruption, Fannie May, Freddy Mac, James Lockhart
Why the heck do they want to retain failed employees? If they were successful it would be a different story.
A “retention bonus” to keep crap.
Oh yeah, that makes sense. /
Treasury to Deduct $165M From AIG Bailout to Account for Bonuses
Why does this not make the press that AIG makes?
easy answer.
Freddie and Fannie are governmen owned. AIG is privately owned. The left wants to bring about socialism and they need you to hate PRIVATE business, not ‘quasi-public’ business.
So it doesn’t matter that 1 PERSON at fannie or freddie took home 90 million in bonuses… it only matters that all of AIG combined takes twice that.
because AIG isn’t owned by Uncle Sam (who is starting to become FAR too much like Uncle Joe Stalin)
So, the Great Gazoo is going to deduct 165M from 30B? Gee, that still leaves AIG with $29,835,000,000. That means they will have received a total of $169,835,000,000 (so far). What a nincompoop.
Keep in mind that when Democrats in Congress wanted to build in greater oversight and control in TARP II, Obama threatened a veto.
“Freddie and Fannie are governmen owned. AIG is privately owned.”
Nope. AIG is owned by the US taxpayer.
“because AIG isn’t owned by Uncle Sam”
80% ownership equals “owned by Uncle Sam’.
flenser
Until the Government took 80% of it with our money, AIG was a private company. compare that to Freddie/Fanny.
AIG was taken over by the government and now they want you to hate private companies so that they can continue.
The federal government is like a lion that has killed a man.
IT has the taste in its mouth.
“Until the Government took 80% of it with our money, AIG was a private company.”
No doubt. But it is not a private company now. And there would be no AIG at all if not for the government “taking” 80% of it. “Taking” is an odd word to apply to giving them bushels of cash.
“now they want you to hate private companies”
I’m perfectly willing to hate private companies, where they deserve to be hated. And many private companies screwed the pooch in this instance. In collusion with government, sure. But there was no shortage of stupidity and corruption in the private marketplace.
The GOP will deserve to get power back when it learns to admit that simple truth.
We’re beng told that AIG needed to pay millions to these CDS experts or they’ll leave. These CDS experts, so called, are the people who insured garbage. The thought that somebody somewhere will give these people another job in the financial industry gives me nightmares.
8 flenser
“The GOP will deserve to get power back when it learns to admit that simple truth.”
QUick, say 10 bad things about socialism and the Democrats.
AIG was socialist and Democratic, lance. They had, and they have, Obama and Dodd on their payroll. You think AIG objected to the government giving them billions for 80% of a company worth zero dollars?
It’s amusing that you think you’re defending the free market system by defending them. Everything I’m saying here IS an attack on socialism and the Democrats. And on socialism and the Republicans as well. I’ll attack socialism wherever I find it, and that is frequently in the boardrooms of large American corporations.
Still waiting.
Wow, that’s a really substantive reply, lance. Did you learn that in your Advanced Logic And Rhetoric course?
I’m still waiting for you to display more intelligence than my mouse pad.
Still waiting.
See, here’s how it is. When someone defends socialist actions (I.e., it is ok to rag on AIG for giving bonuses to execs, but nothing about freddie/fannie), then throws out bullshit-bombs that rag on the gop….. see, I tend to think that they’re a plant.
Thus a very simple challenge, which you still have not done.
and you question my intelligence with your cheap little insult?
One of those knock me over with a feather moments.
House Democrats Vote to Let AIG Keep Bonuses.
not a suprise, n2l. all day long, the dems now want to tax the bonuses at 90%. meanwhile, fannie/freddie folks keep theirs with no bad press
private sector business is being set up like the german jews of the 1930’s.
all for the sake of oppression
Yep, and yet, the congress critters got a pay raise in the same Porkulus bill as AIG got their bonuses, and the critters also voted to give themselves an additional $92K in petty cash.
All the bilking of funds from Fred and Fan, and all the culprits ever got was a slap on the hand, and got to keep all their millions in bonuses.
As long as everybody keeps re-electing these congress critters, the abuse and corruption will continue.
only solution is to make the congress accountable… if only there was a commitee with oversight