Obama objects to severance for ousted CEOs

[dkf]

Obama asks Bush administration to ensure ousted mortgage CEOs aren't given lucrative severance

NEDRA PICKLER
AP News

Sep 08, 2008 21:23 EST

Barack Obama objected to reports Monday that the ousted heads of mortgage giants Fannie Mae and Freddie Mac may receive lucrative severance packages and asked the Bush administration to ensure their "poor leadership" isn't rewarded.

"Under no circumstances should the executives of these institutions earn a windfall at a time when the U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources," Obama said in a letter to Treasury Secretary Henry Paulson and Federal Housing Finance Agency Director James Lockhart. "I urge you immediately to clarify that the agreement with Fannie Mae and Freddie Mac voids any such inappropriate windfall payments to outgoing CEOs and senior management."

Obama was reacting to a report Monday in The New York Times on a consulting firm's analysis that found departing Fannie Mae head Daniel Mudd stands to collect $9.3 million in severance pay, retirement benefits and deferred compensation under the terms of his employment contract, provided his dismissal is deemed to be "without cause."

Treasury spokeswoman Brookly McLaughlin said Treasury would have no immediate response to Obama's letter.

Obama said Congress explicitly gave the Treasury Department authority to block any severance packages as part of a takeover.

"It would be a gross violation of the public trust to fail to use this authority now, while American taxpayers and American homeowners, already struggling in a weak economy, are being asked to accept an historic intervention to rescue these institutions," he said.

http://talkingpointsmemo.com/news/2008/09/obama_objects_to_severance_for.php

[AirmensMom]

1. OMG!

How insane would that be? :banghead:

GOBAMA! :yourock:

[motorcity]

2. Has John McBush asked for them not to be given severance as well?

If not, he is a bigger idiot than I thought.

[dkf]

3. I didn't see anything in the article McCain wrote with Palin.

Which is a joke in itself.

[City Lights]

5. In their joint WSJ article, they call the bailout "outrageous, but necessary."

The bailout of Fannie Mae and Freddie Mac is another outrageous, but sadly necessary, step for these two institutions.

No mention of CEO severance, so I assume they feel it's "outrageous, but necessary" as well.

[mod mom]

4. I swear they're trying to make our heads explode-the sheer audacity!