The next AIG?
April 9th 2009 00:32
Like AIG, Fannie Mae and Freddie Mac will soon be handing out retention bonuses:
Fannie and Freddie were at the heart of our economic collapse. They sold lots of high-risk mortgages. When those mortgages went bad, the companies imploded and the country's economic environment began its decline. Now, the companies who helped set off this economic collapse are going to be handing out retention bonuses to the very people who shepherded the companies into financial ruin. Are they serious?
If the AIG bonuses caused a hullabaloo in the halls of Congress, this should merit at least a ruckus or a fracas. In fact, the outrage over these bonuses should exceed the outrage over the AIG bonuses because these bonus payouts will greatly exceed the payouts made by AIG. Keep in mind, though, that several of the current members of Congress were significantly entwined with Fannie and Freddie in what became a public/private partnership between the government and private companies. Will they do the right thing and express at least the same level of outrage against Fannie and Freddie that they displayed against AIG?
We'll soon see.
Fannie Mae and Freddie Mac are preparing to hand out $210 million in taxpayer-funded retention bonuses to 7,600 employees. No bonus will exceed $1.5 million, but more than half of all Freddie and Fannie employees will receive an average bonus exceeding $24,000.
Fannie and Freddie were at the heart of our economic collapse. They sold lots of high-risk mortgages. When those mortgages went bad, the companies imploded and the country's economic environment began its decline. Now, the companies who helped set off this economic collapse are going to be handing out retention bonuses to the very people who shepherded the companies into financial ruin. Are they serious?
If the AIG bonuses caused a hullabaloo in the halls of Congress, this should merit at least a ruckus or a fracas. In fact, the outrage over these bonuses should exceed the outrage over the AIG bonuses because these bonus payouts will greatly exceed the payouts made by AIG. Keep in mind, though, that several of the current members of Congress were significantly entwined with Fannie and Freddie in what became a public/private partnership between the government and private companies. Will they do the right thing and express at least the same level of outrage against Fannie and Freddie that they displayed against AIG?
We'll soon see.
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Comment by S.L.
The Political Brief
Comment by PopulistConservative
Angry Electorate
Comment by Lester Caudill
Round Politics
I think that everyone government official appointed or elected should face ethic charges if they took money from either of these financial institutions.
Comment by PopulistConservative
Angry Electorate