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Fannie & Freddie bonuses three times the size of AIG bonuses

Saturday, November 12, 2011

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Remember the outrage from the administration over hefty bonuses paid to AIG executives in 2009? Back then, shortly after AIG was bailed out by American taxpayers, the company went through with already planned bonuses to top executives.

The bonuses, which totaled $165 million, sparked a hot national debate over how much freedom private companies should have to pay large bonuses after they had become dependent on taxpayers. The House and Senate passed measures calling for the taxing of executive bonuses for bailed-out companies to the tune of 70-90 percent.

The president reacted forcefully: “”[I]t’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?”

Last week, another set of bonuses for bailed-out companies got decidedly less bad press. Fannie Mae and Freddie Mac, to whom taxpayers have already given hundreds of billions, doled out $12.79 million in bonuses to its executives for meeting modest goals.

One could argue that there’s no outrage from the administration over the Fannie and Freddie bonuses because the total amount of bonuses is so much smaller.

But in fact, the average executive bonus is far larger.

Fannie and Freddie spent $12.79 million on 10 bonuses for an average of $1.27 million per bonus.

 

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  • Doug

    If all was said and done…The American People would be outraged to discover just how poorly this Group in both Fannie and Freddie have done since Clinton sign the American Act and the now Housing mess we have faced or still are facing. The past director made off with millions of dollars…without a word from this Washington Gang. Now to hear that they should be in any way entitle to a bonus…is just another example of how far this once Great Nation has fallen! In God We Must Trust!

    • Patriot and an American

      Any one that works for a charity or the government is entitled to a $1 million bous. I guess they absolutely believe that charity begins in their pocket/bank account.

    • Wondering Woman

      How do you figure that was charity? It was another case of the American taxpayer gets
      stuck with the bill for money he didn’t borrow and never saw. That would seem to come under the heading of Robbery by our politicians, not charity. If my part of that debt was charity, I demand it back NOW!

    • http://aol jim

      I think that these programs should be abolished !!They are so wasteful !!And the Administrators of these programs be put in Jail !!!Along with Obama , Eric Holder and his Judges for Crimes against the State and People of America !!!

    • gml

      Lest we forget Barney Frank??????????

    • SusieNB

      Having just finished with a deal concerning Fannie Mae, I learned this.
      First: I bought a house from Fannie Mae. They bought it at an auction for 400K. They put it on the market for 350K, it sold for less than 300K.

      Second: My previous home, with a mortgage company had no fees for early pay off. That mortgage was bought by Fannie Mae. I sold that home and Fannie Mae had $1500 in payoff fees that I had no choice but to pay.

      Circle Government!! Chase your butt, then get a hefty bonus from the taxpayer!!

    • Jonathan Gartner

      It goes even further back to Carter who started this mess that caused the banks to have severe problems(7.7 trillion dollars worth) Then Clinton came in and told the banks that you either make these bad loans or the DOJ will sue you on racial discrimination. Dodd,Frank(and his boyfriend) and then community organizer and lawyer (later Sen.) Obama completed the mess

    • Pineapple

      In December, 2009, President O’Bama made a speech blaming Wall Street “Fat Cats” for our economic crisis. Wall Street “Occupiers” also blame Wall Street “Fat Cats for income disparity.

      In the speech, O’Bama blamed an “era of easy credit” that allowed millions of Americans to borrow beyond their means, buy homes they could not afford, and compound the housing bubble.

      What O’Bama did not say is that Bill Clinton, Chris Dodd, and Barney Frank forced Fannie Mae and Freddie Mac – both quasi government entities – to back sub-prime loans to minorities who could not repay them.

      Banks who balked a making these loans were threatened with discrimination law suits and harassing audits.

      Banks then made these loans and sold them to Fannie Mae and Freddie Mac, who bundled them and sold them to Wall Street investment firms as investment grade securities.

      The bush administration, John McCain, and Alan Greenspan warned that this practice was not sustainable, and that Fannie and Freddie should be closely regulated.

      Republican efforts to tighten regulations on these entities were blocked by Chuck Schumer, Barney Frank, and other Democrats.

      Barney Frank said:
      1.) Sept 11, 2003 – “These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.”

      2.) Sept 25, 2003 – I want to roll the dice a bit more in
      this situation toward subsidized housing.”
      2.) July 2008 – Fannie and Freddie are fundamentally
      sound, they are not in danger of going under….I do
      think their prospects going forward are very solid.”

      Borrowers who obtained adjustable interest rate mortgages were faced with rising interest rates a year after their mortgages were made. This caused many borrowers to be unable to meet their payments.

      As borrowers began to default on these loans, the investment grade securities backed by these mortgages became virtually worthless. Consequently, Fannie and Freddie went bankrupt and had to be bailed out by taxpayers . This caused a panic on Wall Street and a stock market meltdown occurred.

      Alan Greenspan could have reined in the housing bubble by raising interest rates, but he did not.

      While this was going on, a federal investigation found that Fannie Mae had been “engaging in extensive financial fraud” for more than six years by doctoring earnings reports so executives, including O’Bama’s personal friend,
      Franklin Raines, could collect hundreds of millions of dollars in bonuses. None of these executives were imprisoned. They simply paid fines and resumed their lives of luxury with their ill-gotten gains.

      The Wall Street “fat cats”, that O’Bama referred to in his speech, were culpable in this financial crisis to the extent that credit default swaps and derivatives compounded the crisis.

      However, the root causes of the crisis were:
      1.) Liberal politicians interfering with the private banking sector.
      2.) The refusal of Congressional Democrats to tighten regulations on Fannie Mae and Freddie Mac.
      3.) Corrupt Fannie Mae executives.
      4.) An inept Federal Reserve chairman.

      President O’Bama, being the staunch anti-capitalist that he is, excoriated only the private sector types for the economic crisis instead of the public sector types who caused the crisis.

      He now seems intent on repeating this crisis by loosening loan refinance requirements to encourage more government backed mortgages for which taxpayers will be ultimately responsible.

      This is another vote buying scheme, just as is his plan to forgive college loans after twenty five years of “qualifying” payments.

    • http://verizon.net budman

      Obama appointed one of those idiots to his cabinet as Treasury Secretary; a promotion for being a dismal failure and who couldn’t run a candy store. Doesn’t that make you feel secure we have an imbecile in charge of our Treasury?

  • The Enemy

    The government should cease bailing-out banks and corporations with taxpayer money. Let them go into bankruptcy if they cannot get their financial picture in order. It’s outrageous to keep giving Fannie and Freddie more money!

    • Ole Vet

      Especially, if that bailout goes directly into the pockets of CEOs and CFOs!

  • fliteking

    The Gov’t continues to fly their middle fingers in our face.

    Odd – – – I never see liberals commenting and defending obvious disdain for citizens by the Gov’t they so worship.

  • http://www.patriotactionnetwork.net Shane

    Fannie and Freddie should be taken over by the feds and then dismantled. These corrupt organizations have already cost the taxpayers over $150 billion!

    • http://www.lookatwater.com Bev

      If they are guaranteed loans by the government, then they are already Fed. This is where the shit was built up to hit the fan in the first place and Obama was beating down doors from the days BEFORE he was senator, innsisting that poor people should be given loans for homes. While a senator, some of the repubs. including Bush tried to bring the case to Congress that these entities were about to explode. Well…we have seen the videos of Waters, Frank, Raines, et al, defend them…and refusing to investigate them. Instead, protected them. The banks were screwed…can you even blame them for trying to recoup.

    • patriot2

      Shane,fannie mae & freddie mac are already part of the government,that’s why they are such miserable failures.way back in clintons time is when the dem congress made them make bad loans to people that couldn’t pay them back is when they should have been dismantled.now they are figure heads of obama’s & government corruption,& need to be removed along with their executives & bonus & bank accounts.

  • http://www.michelebachmann.com Mike Mazzone

    Vote Michele Bachmann

    • Livefree1200cc

      Ron Paul/Gary Johnson 2012 !

  • Pegi

    Why bonuses for a screwed up goverment entity? This is ridiculous and should be stopped immediately. Fannie & Freddie need to close shop…these shouldn’t be bonuses but severances.

  • Byron

    Just showa that government adheres completely to the Peter Principle:

    The theory that employees within an organization will advance to their highest level of competence and then be promoted to and remain at a level at which they are incompetent

  • Texas Granny

    It is way past time to close Fannie and Freddie who have long cost the American Taxpayer too much money. Phone, write, and email your representatives as often as necessary until they get the idea that we no longer wish to fund Fannie and Freddie, just two more worthless government agencies that don’t work.

  • R Joe Dunnam

    If congress does nothing about this, it will be another reason to vote over half of them out and out this term!

  • CapitalistFool

    …Atlas Shrugged…

  • Poncho Villa

    Let FNMA and Freddie go to hell. Why would the admministration bailed out these monsters in the first place and worse yet from the taxpayers money, the American taxpayers. This is outrageous. Vote the bums out in 2012

    • Stan

      Of course you forget that Fannie and Freddie gave huge Donations to Dodd, Obama, Kerry and Franks. And AIG also gave to Obama.

      Barney Franks had a gay love affair with a high ranking member of Freddie Mack. Remember?

      All of these guys refused to support legislation that reigned in Fannie and Freddie.

      Make sense to you now?

    • David in MA

      Franks “love affair” with a high ranking person is exactly the reason queers should not be in the military (unless they are placed in Non-Sensitive positions, like garbage details), the possibility of blackmail and “favors” certainly exxists.

  • Bob

    THAT just OBAMA paying off his ARMY SO HE CAN KEEP HIS PASSED OUT OF THE NEW’S.

  • Yellow Horse

    Bigger crooks deserve bigger bonuses!!! Oh heck I forgot to stop by and pick up obamas book that already cost Americans 80 MILLION DOLLARS!!!

  • Jim Keller

    It is very clear the Obama and his socialist administration must go before any positive action will be taken by the Federal Gov’t to bring Fannie May and Freddie Mac under control.Remember this financial mess created by Obama and liberal Dem’s at voting time in Nov. 2012.

  • David in MA

    As hard as I try, I cannot think of anyone worth millions of dollars in pay, let alone in bonuses.
    A proper bonus for ANYONE, should be no more than $25 or $30 Thousand Dollars.
    AND, no bonus for poor proformances!

  • guest on this planet

    Their bonus should be a minimum of 20 years in prison without chance of parole .

    • http://verizon Ann Rand

      guest… And take Barney Frank and Chris Dodd with them.

  • pbeaux

    These bonuses come as Freddie Mac sends out notices to all the listing agents of their properties that their commission will be REDUCED 33% at the beginning of the year!!!

  • richard

    This was done intentionally to stick a pin in the occupy could! No wonder that they are fed up.
    They should put all their troops in D.C.!

  • Kenny

    The difference between Fannie & Freddie and AIG is that Fannie & Freddie are in bed with Barney Frank.

  • http://www.c-c-c.ws Charlie Hanna

    I bet the 99% crowd don’t ever discuss the 1% robbers who pay off our government “leaders.” Outrageous is an understatement.

  • kohlsbear

    I cannot believe that all the honest men and women in high places are not doing enough to put these crooked politians behind bars. The honest people of the USA work so hard to have a decent life. Some are just barely making it but pushing ahead honestly. These crooks are robbing us of our heritage. Natural born Americans are losing their rights that were given to everyone born in the US. These rights are being taken from us little by little. They have and keep robbing our treasury and the people. Where are you that have the power to put a stop to this without pitting us against one another. God Bless America.

    • Ole Vet

      Another reason why Congress should NOT be able to set their own pay and perks! Congressional pay raises should not be available to incumbents until the SECOND election AFTER it is voted, at the very least!

  • Patriot and an American

    This 99% crowd doesn’t have the smarts to figure out that the big business is not the same as big government. We are getting the shaft by big goverment, not by businesses. Businesses have been keeping people supplied with food, housing, etc. for generations. Why should they try to destroy that. Maybe they will feel better when mummy or daddy gives them a new I-phone.

  • am2sweet

    This is the case of the rich getting richer and the poor getting poorer and the ones in the middle starting to slide downward. The elites must be mostly Nazis who want this country taken down so they can help rule it. And I’m amazed at those who are lazy are helping the cause. They are too stupid to realize that if we end up like a third world country they will be even worse off. And they’ll have to work to have anything because they’ll be told to. What idiots.

  • http://pjtv.com skip gainer

    Do you ever wonder how much of a bonus the president gets every tear? Just a thought!

  • G

    What a rip off !

  • Blair Colquhoun

    Where’s the outrage? Liberals were soooo faux
    outraged by the bonuses given to AIG’s executives. But where’s the REAL, GENUINE, outrage that comes from the top executives at
    Fannie and Freddie getting bonuses 3x AS MUCH? There ain’t none. There ain’t none at all. Why? Because liberals, to praphrase the 1992 Travis Tritt song Lord, Have Mercy On The Working Man: “Treat us like a mushroom ’cause they feed us bull and keep us in the
    blind.”

  • Steve

    Fannie and Freddie is just another Democrat watering trough..Even Obama drank from the trough…Liberal outrage, White House outrage. No way….and by the way, tell the Secret Service I will be stopping for lunch after the lst nine holes and arrange to have my clubs cleaned….

  • Buck

    If Frannie and Freddie did not make a profit for taxpaayers they should be in prison , as well as those who approved those bonuses . There is no more proof needed that ALL government executives are thieves . why hasn’t this beem announced in the MSM ? Now you know who NOT to trust .

  • Villa Merkle

    Fannie and Freddie are crooks, a little kess professional than Goldman Sachs, still they are gung-ho on stealing the taxpayers blind!

    Also, do recall the story in Patriotupdate about the Big Banks, “Bank of America”, “Chase” etc. not caring about customers deposits and accounts under $3,000,00.00 ?

    Well it seems they are beginning to have an attitude adjustment! Keep it up – keep closing your bank accounts with these thieves!

    Re: http://www.blacklistednews/com/Big_Banks_Plead_with_Customers_Not_to_Move_THeir_Money_/16467/0/0/0/Y/M.html

  • Villa Merkle

    That link is not firing up so well!

    So – Go to http://www.nwo.survivalguide.com

    Then once on that site go to the sub heading Newsroom click on that – Then under the heading View all RSS Feeds, click on -Black Listed News – Then scroll down through the News Story Titles to the story: “Big Banks Plead With Customers Not to Move Their Money”

  • Flyrodroger

    Thats what happens when you transplant thugs from chicago and put them in the white house.

  • Kim Turnage

    This is absurd but not surprising. It’s as bad as Congress voting themselves payraises and cost of living increases while denying seniors a COLA 3 yrs straight.

    When Democrats scream about rich people getting richer and needing to share the wealth, they only mean the Republican rich people-they want you to believe there are no rich liberal Democrats.

    It infuriates me that these OWS idiots are so enamored of people like Michael Moore-net worth 50 million-like these hypocrites would ever give a dime of their money to anyone else! Or Al Gore’s environmental crap with his 8000 ft mansion in California and it’s “carbon footprint”.

    Wake up koolaid addicts-these people are hypocrits and liars. They are the very enemy you are protesting and raging against! Look at Forbes Richest list-most are liberals. Nancy Pelosi is worth over 35 million, etc… Why do you believe everything they say about sharing the wealth and giving everyone an equal share-tell them to cut you a check from their personal fortune and then I’ll believe!!

  • Jon Weiss

    Just one more prime example showing why NO ONE should be getting taxpayer funded bailouts. The Market needs to be allowed to to run its course, and the taxpayers should NEVER bailout a private business. Taxpayers should be contacting Washington DC to express outrage at this legalization of theft created by the politicians.

  • Marge

    Big Amen to ALL of the above! And RIGHT ON KIM TURNAGE…..THEY ARE ALL A BUNCH OF THIEVES

  • Marge Tibstra

    AMEN to ALL of the above! And right on to Kim Turnage….They are ALL a bunch of thieves!!They will get their real reward, at the “last days”…

  • REDTOES1946

    I liked Oboma better when he was a resident and not our president. It must have been a typo,surely he’s not smart enough to be re-elected after all the damage. But then there are those that aren’t smart that will vote for him for the entitlements. Dang it, it’s hard to do things honestly any more. Where are all the good politicans. They can’t all be corrupt. Yep! They are all corrupt. I thought so. No integrity in any of the jerks.

    • June

      Vote the Tea Party in and Vote Liberals and RINOs out, in short in nov 2012 put out the trash.

  • June

    It’s all about power and control. Institutions that support the Obummer Administration are protected by the Socialist Lame-Stream-Media and the Liberal Senate. The same goes for the Unions which are just a money laundering agents for the Liberals.

  • June

    My objections to Obama have nothing to do with his race or his country of origin, everything to do with his character, his policies and his inner circle of friends and associates.

    http://www.youtube.com/watch_popup?v=tCAffMSWSzY#t=28

  • Kevlar Linc

    Grab the money and run, you thieving cockroaches. When the lights go back on, we will find you.

  • Bruce

    Read the artile below… Don’t forget how Franklin Raines and Timothy Howard(is he Barney Franks boyfriend?) “COOKED THE BOOKS” and cheated AMerican Taxpayers out of tax dollars. Then Raines took a $100M bonus when he left Fannie. Obama kept him on his transition team… Now Raines is living off the money he milked from the AMerican Taxpayer. http://www.washingtonpost.com/wp-dyn/content/article/2006/05/23/AR2006052300184.html

  • J J

    These Fannie and Freddie jerks shouldn’t get any pay much less bonuses until they fix the housing problem – my very underwater mortgage included!!!

  • http://aol Ray

    As long as we have a bunch of pussyies running
    The country, and more dam dummies voting ,
    This kind of stealing will continue.

  • http://patriotupdate.com Steven

    What a slap in the face of every real American in this country….

  • VegasLarry

    I’d make them give back every dime of the bonus money and their salaries as well, since they haven’t earned it. Better yet…fire them and replace them with a crew that gets paid for the results they produce. No bonus until the housing industry is functioning correctly again.

  • W Smith

    Taxes!! Isn’t that what they are for? To enrich bureaucrats at the public trough! They never miss a pay raise but chafe at the notion of obliging commitments to the taxpayer. Who are we to expect anything? To be honest the French Revolution is becoming more and more revelatory of today’s situation. That would however play into the hand of our most visceral enemies. We do have friends on “Capital Hill”. Let’s not waste our opportunity. 2012 I’ve heard has something to do with the Mayan Calendar. Perhaps my calendar is out of date and I should check to posterity. Maybe; just maybe this is all a waste of time and man will know no future at all. Perhaps the Democrat Party is our best path to the end of time.

  • luvsamerica

    I don’t think Obama has forcefully said enough! He uses all this fancy talk to say how mad he us about the bonuses, so why doesn’t he say something fancy about not taking it? ! I have sent letters to my congressman stating my position. Almost all the folks I know are doing the same. We may not be able to stop the bonuses, but I was able to voice my opinion. Who knows, all it takes is one voice to become a roar!!!!

  • Jpop

    Just one more “GOTTCHA SUCKERS” and more to come! Frickin incredible right before our eyes and there aint sheet we can do about it…awiting ANOTHRR SCAM!!

  • Jpop

    Just another “GOTTCHA ONE MORE TIME” and more to come! And there aint sheet we can do cause WE can’t vote they can STEAL OUR MONEY thry just TAKE it…FREAKIN INCREDIBLE…protestors u need to protest in front of the WHITEHOUSE!!!