Fannie, Freddie Executives Get Big Payday

[mcablue]

Source: Wall Street Journal

The top regulator for Fannie Mae and Freddie Mac is expected to announce millions of dollars in pay packages for top executives at the government-run mortgage-finance titans, people familiar with the matter said.

The Federal Housing Finance Agency approved compensation plans for Fannie Chief Executive Michael Williams and Freddie CEO Charles Haldeman Jr. Those packages are expected to be in a range of $4 million to $6 million, people familiar with the matter said. The companies are expected to spell out pay details for their top executives in securities filings Thursday morning.

The Christmas Eve announcement is likely to provoke a fresh round of controversy concerning the federal government's role in propping up the two companies. Taxpayers have pumped more than $100 billion of capital into both firms to keep them from collapsing amid huge losses stemming from falling home prices and mortgage defaults.

Representatives of both Fannie and Freddie declined to comment Wednesday evening.

Read more: http://online.wsj.com/article/SB126161634214403629.html

[Raven]

1. Wow! Times have certainly changed. My Dad was a director of AT&T

for decades (from the 50's to the 80's). He got $100 for every BoD meeting he attended and thought that was excessive. He has got to be rolling in his grave at this excess. No one is worth that much money, no one.

[aquart]

3. Certainly not these thieves.

[WriteDown]

2. I'm sure these pay packages will be closely examined by the Pay Czar....

:sarcasm:

[avaistheone1]

4. That sucks.

Very disappointing -especially in terms of these agencys' performance and the economy in general.

[KakistocracyHater]

27. outlaw CEO position, exists only at the pleasure of Congress-choose: either

the CEO is outlawed or the corporation loses 'personhood'. It's a dead weight to the corp., steals from taxpayers(too big to fail), steals from shareholders, shifts jobs to the world's cheapest workers.

[bluedigger]

5. Thank goodness!

I was worried about dem guys!

[Algorem]

6. hooboy i'd hate to be them when obama finds out.

oh boy are they in trouble now.

[L0oniX]

7. Well it's nice that the Obama administration says it is removing the $400 billion financial cap...

...it will provide to "Fannie Mae and Freddie Mac". Nice ...and just in time for christmas.

[Cal Carpenter]

8. Ya think they could have timed those headlines better

Maybe a week apart at least.

How sick to see those both on the same day, while the rest of us are finding out we aren't even getting our nominal $300 bonuses, no raises next year, and another round of layoffs coming up...

Bah fucking humbug.

[AngryAmish]

9. Of course they will - they deserve it

They have worked their entire lives to be a parasite. Do you object to them stealing your money? Then fuck you very much.

[FLAprogressive]

10. Administration removes current $400 billion cap on bailout support for Fannie and Freddie

Source: AP/Baltimore Sun

WASHINGTON (AP) — The Obama administration says it is removing the $400 billion financial cap it will provide to Fannie Mae and Freddie Mac to keep the mortgage giants from failing.

Treasury Department officials said the cap will be replaced with a flexible formula to ensure the companies will have all the government support needed to stand behind the billions of dollars in mortgage-backed securities they sell to investors.

Since the financial crisis hit last year, the Fannie and Freddie have received $111 billion in government infusions. While most analysts believe that the companies are unlikely to use the full $400 billion, the administration decided to remove the cap to eliminate any uncertainty about the government's commitments.


Read more: http://www.baltimoresun.com/business/sns-ap-us-mortgage-giants-bailout,0,6626576.story

---

Rahm gets his wish. More taxpayer dollars being made into bailout money.....

[mullard12ax7]

11. They need to make sure people can NOT save their homes

Plus, everyone at fannie and freddie needs a 6 million dollar bonus!

[ima_sinnic]

12. so we can't blame Congress this time? (nt)

[mzmolly]

13. Fannie and Freddie are backing the Making Home Affordable programs,

and they do need funds to continue helping people stay in their homes. That said, the outrageous bonus's need to be dealt with.

[pscot]

16. Fannie and Freddie are the ONLY ones

making affordable home loans. I read over at Dkos that 90% of new, home mortgages are now being guaranteed by these two agencies. Kill them, and you will drive a stake through the heart of the housing market.

[mzmolly]

17. I believe you are correct.

I'm not sure we always look at the larger picture?

Peace and Happy Holidays. :hi:

[notesdev]

20. They're just price supports

Prices rise to the level of capital available to purchase with, all this lending does is give people the money to bid up price. Housing will be much more affordable for everyone with them gone, to say nothing of the fundamental injustice in favoring those with property over those without.

[Tim01]

21. So more people fail on their loans, then we give the mtg companies money to cover it?

Is that right, or am I missing the mark?

[No Elephants]

32. No middle ground between this and zero affordable home loans?

[Yupster]

36. We're blowing up the same housing bubble that just burst

Thirty year mortgages of under 5 % can't work for banks when interest rates go up.

If a bank has to pay 6 % on a cd and only gets 4.75 % for its mortgages, we'll be right back supporting the banks again in just a few years.

With the US borrowing $ 150 billion a month, interest rates are going to have to go up soon.

[inna]

14. WTF is wrong with Obama??

Doesn't he realize that it makes him look really bad and hurts him politically?

I think they lost it completely, at this point. They don't even bother to pretend that they care.

[FLAprogressive]

18. $ talks

[notesdev]

19. His Chief of Staff

who used to sit on Freddie's board of directors.

[defendandprotect]

15. Disgusting . . .. capitalism strikes again -- !!!

[fascisthunter]

22. I'm Sure the conservatives in our party will tell us this is good for us

reminds me of an illustration I had seen of a psycho coming at the viewer with a knife saying, "I'm here to help you!"

[ipaint]

28. "no matter how big their losses may be"

Treasury uncaps credit line for Fannie, Freddie

Reuters
Thursday, December 24, 2009; 5:11 PM

WASHINGTON (Reuters) - The Obama administration pledged on Thursday to back beleaguered mortgage finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N> no matter how big their losses may be in the next three years.

It also jettisoned a demand that the two companies cut the size of their mortgage-related investment portfolios next year, allowing them to provide even more support in the near term for a housing market recovering from its worst slump in decades.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/24/AR2009122402367.html



The sky is the limit...unbelievable.

[Faygo Kid]

23. And God bless us, every one.

For some reason I am reminded of Mrs. Cratchit's feelings upon Bob's proposal of a toast to Mr. Scrooge. The only difference is, these brazen cheats are, unlike Ebenezer, beyond redemption:

`Mr Scrooge.' said Bob; `I'll give you Mr Scrooge, the Founder of the Feast.'

`The Founder of the Feast indeed.' cried Mrs Cratchit, reddening. `I wish I had him here. I'd give him a piece of my mind to feast upon, and I hope he'd have a good appetite for it.'

`My dear,' said Bob, `the children. Christmas Day.'

`It should be Christmas Day, I am sure,' said she, `on which one drinks the health of such an odious, stingy, hard, unfeeling man as Mr Scrooge. You know he is, Robert. Nobody knows it better than you do, poor fellow.'

`My dear,' was Bob's mild answer, `Christmas Day.'

`I'll drink his health for your sake and the Day's,' said Mrs Cratchit, `not for his. Long life to him. A merry Christmas and a happy new year. He'll be very merry and very happy, I have no doubt.'

[saberjet22]

24. Onus is on the Bonus

These crooks get paid MORE than enough! They don't need any fucking bonus at all. Not a goddamn cent!How's about someone putting a stop to this shit?!!!

[subterranean]

25. Come on, they need those millions as an incentive.

Anything less and they'd just walk away and let Fannie and Freddie collapse. You can't expect them to work for a mere $1 million or $2 million, can you?

[ipaint]

26. Treasury Okays Unlimited Slush Fund For Fannie, Freddie

Treasury Okays Unlimited Slush Fund For Fannie, Freddie
By: Jane Hamsher Thursday December 24, 2009 4:00 pm

Forget raising the cap to $800 billion for Fannie/Freddie. They announce (on Christmas eve no less) that the slush fund for picking up toxic mortgage is unlimited:

Treasury uncaps credit line for Fannie, Freddie

The Obama administration pledged on Thursday to back beleaguered mortgage finance giant Fannie Mae and Freddie Mac, no matter how big their losses may be in the next three years.

It also jettisoned a demand that the two companies cut the size of their mortgage-related investment portfolios next year, allowing them to provide even more support in the near term for a housing market recovering from its worst slump in decades.

As Ian Welsh notes, now that the Fed might actually be audited, what better place to stash all those toxic assets than at Fannie and Freddie, where there is no independent auditor since they sacked their own Inspector General?

http://firedoglake.com/2009/12/24/treasury-okays-unlimited-slush-fund-for-fannie-freddie/

Fucking criminals.

[boppers]

29. Fire Cross, DeMarco, and Dickerson NOW. The CEO's, too, if we can.

This is bullshit, and totally contrary to the purpose of Fannie and Freddy.

http://www.fhfa.gov/Default.aspx?Page=239

[ShamelessHussy]

30. Of course, what else would they expect these days? Until real CHANGE comes

we should expect nothing else.

nor should we expect our 'representatives' to step in and provide a solution to us getting used and abused by our employers, and our insurers.

even if we elect someone who PROMISES 'real' CHANGE.

and so it goes...

[laughingliberal]

31. Okay, is this just damned suspicious in light of Jane Hamsher and

Grover Norquist's letter that caused so much outrage on DU yesterday? The letter mentioned the Obama administration intending to funnel $800 billion to Freddie and Fannie with no Inspector General oversight and what looks like a deliberate attempt to neglect appointment of an Inspector General to allow the statute of limitations to run out on Rahm's illegal activities. I

[No Elephants]

33. Merry Christmas to Fannie, Freddie, health insurers, drug companies, big hospitals and execs.

everywhere, no matter how highly paid. And a happy New Year, too.

May karma get all of you and the politicians you rode in on.

[kdmorris]

34. That's thoroughly disgusting

$4-6 million is more that I can hope to make in my entire lifetime (and I'm doing better than about 80% of America!!) Why is this obscene amount of money allowed to be handed over to them?

[mbperrin]

35. Thank gawd! I was afraid NO ONE would think of the CEOs!

Surely I don't need a sarcasm symbol here.....