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Thread: Fannie Mae & Freddie Mac will hand out $210 million in bonuses

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    Elite Member witchcurlgirl's Avatar
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    Default Fannie Mae & Freddie Mac will hand out $210 million in bonuses

    Fannie and Freddie's Fuzzy Math: $100 Billion In Losses = $210 Million In Bonuses. Bring On The Outrage



    Back in January, President Barack Obama said it was "shameful" that near-bankrupt insurance giant and bailout-baby AIG was awarding $400-million in "retention" bonuses to the very same reckless Wall Street cowboys who damned-near sank the entire U.S. financial industry with their ultra-high-risk credit default swaps and derivatives shenanigans.

    In the ensuing weeks and months, Obama's personal outrage turned into a massive anger-fueled populist movement that called for everything from an immediate return of the bonus money to criminal prosecution of those who took it. How dare they was the overriding sentiment in Washington, Albany (NY Attorney General Andrew Cuomo demanded a return of the money against threats of publicly naming the executives), the media, and in living rooms across America. Legislation soon followed, with a 90% tax on the bonus money. There, that'll show 'em.

    And now comes the news that failed mortgage giants Fannie Mae and Freddie Mac--which own or insure more than half of the nation's mortgages--are about to hand out $210-million in bonuses of their own, also to "retain" the high-priced failures who've nearly destroyed them, and who for some reason they can't seem to live without. The bonuses will cover 7,600 employees and are as high as $1.5 million.

    Yes, these are the same two behemoths who combined lost $100 billion last year.

    The kicker here? The Fannie/Freddie bonuses have been defended by the companies' Federal regulator, James B. Lockhart III of the Federal Housing Finance Agency, who intends to approve the payouts. Lockhart is a Bush man, appointed by the former president in 2006. Obama has the power to name a new chief regulator, but he so far hasn't, which is a mystery. So what we're left with then is a de facto endorsement of these outrageous bonuses by the Obama administration, and therefore an inexplicable contradiction of its prior public thrashing of AIG.

    Lockhart, the taxpayer-paid G-man, incredibly espouses the same hogwash regurgitated ad nauseam by the Wall Street brass themselves: "These payments send a signal that we think people are important and we want to keep them. If the bonuses are rescinded, it sends the exact opposite signal, and it would be extremely dangerous for the American economy to lose these workers at this point."

    Excuse me? I'll tell ya what signal it sends. It says we in this country don't know what the fuck we're doing. It says to the world that we let a bunch of greedy gamblers create insanely high-risk financial instruments which erased trillions in investor equity and then saved their sorry asses with taxpayer-funded bailouts. Oh, and we then gave them million-dollar bonuses as rewards for manufacturing this unprecedented shitstorm. How's that for a signal?


    Andy Ostroy: Fannie and Freddie's Fuzzy Math: $100 Billion in Losses = $210 Million in Bonuses. Bring on the Outrage
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    Elite Member Brookie's Avatar
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    Shameful. I hope Obama goes ballistic over this as well. Do these bungholes not read or watch TV? OTOH, they're not the first company to hand over generous bonuses for executives who performed at maxi-fail level.

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    Elite Member MontanaMama's Avatar
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    Enough is enough - how can the gov't take the auto industry through a protective bankruptcy to bust the union and legacy contracts and allow the white collar to profit from their own stupidity. My guess is they backed off the rabid AIG bonus prosecution when they realized they were contractually on the hook for Fannie & Freddie bonuses too, but you'll never hear about that. The auto industry at least makes something the mortgage industry is just paper.

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    Elite Member kingcap72's Avatar
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    At some point Obama is going to have to take the same tough stance with Wall Street and the banks that he's taken with the auto industry. And that means the end of the damn bonuses.

    If it means he has to threaten to oust the CEOs of the companies, like he did with GM, then so be it.

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    Elite Member B.C.'s Avatar
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    Quote Originally Posted by MontanaMama View Post
    Enough is enough - how can the gov't take the auto industry through a protective bankruptcy to bust the union and legacy contracts and allow the white collar to profit from their own stupidity. My guess is they backed off the rabid AIG bonus prosecution when they realized they were contractually on the hook for Fannie & Freddie bonuses too, but you'll never hear about that. The auto industry at least makes something the mortgage industry is just paper.
    I agree MM. It makes me sick to read about it.

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    Friend of Gossip Rocks! buttmunch's Avatar
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    It boggles the mind that someone, anyone, can be rewarded for doing a bad job. I have so chosen the wrong career path. These fuckers should die.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

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    Elite Member LynnieD's Avatar
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    I have a family member that works for Freddie Mac in Virginia and while she is a very smart, highly educated hard working woman, she has been given numerous raises and a bonus---in the last year alone. NUMEROUS raises. Even SHE cannot believe it.

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    I'm sure the Dems aren't going to do anything about those raises and bonuses since they receive so much money from those organizations.

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    Elite Member qwerty's Avatar
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    It's sickening when the people responsible for negatively impacting the economic livelihoods of so many receive eye popping financial rewards for their greed and incompetence. Big bonuses are not going away.

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    Elite Member cmmdee's Avatar
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    WTF is wrong with these people?

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