The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

OUTRAGE: Fannie Mae and Freddie Mac to give 611k bonuses each to execs.

Posted by iusbvision on March 18, 2009

Fannie Mae and Freddie Mac ignored the warnings of their own regulator since 2001. The slicked the palms of partisans and politicians to the tune of $200 million with Chris Dodd and Obama getting the most in order to keep those Democrats blocking any reform. They hired almost every lobby firm in DC to keep other lobby firms from lobbying against them. The people who ran Fannie Mae, Raines, Johnson, Gorelic, are all former Clinton appointees who paid themselves tens of millions of dollars. For decades this was the perfect corruption ring.

For details see our Mortgage Crisis category for our complete coverage on this story since the beginning.

Yahoo/AP News:

WASHINGTON (AP) — Fannie Mae plans to pay retention bonuses of as much as $611,000 each to key executives this year as part of a plan to keep hundreds of employees from leaving the government-controlled company.

Rival mortgage finance company Freddie Mac is planning similar awards, but has not yet reported on which executives will benefit.

The two companies, which together own or back more than half of the home mortgages in the country, have been hobbled by skyrocketing loan defaults. Fannie recently requested $15 billion in federal aid, while Freddie has sought a total of almost $45 billion.

Fannie Mae disclosed its “broad-based” retention program in a recent regulatory filing with the Securities and Exchange Commission. The company was only required to disclose the amounts for the top-paid executives, who will pocket at least $470,000 on top of their base salaries. The bonuses are more than double last year’s, which ranged from $200,000 to $260,000.

A company spokesman declined further comment.

Wall Street Journal is all over it

Ed Morrissey at comments HERE (and folks, we link to Ed Morrissey probably more than any other blogger, we do that because among political bloggers Ed is among the very best and brightest).

One Response to “OUTRAGE: Fannie Mae and Freddie Mac to give 611k bonuses each to execs.”

  1. Imee said

    This is really weirding me out. I mean, I’m all for saving jobs and such, and keeping the business of homes and mortgages alive, but at what expense? I mean over $611,000 each for four people is a little too much in bonuses, isn’t it?

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