Fannie and Freddie Bonuses - Where's OWS?

#1
volinbham

volinbham

VN GURU
Joined
Oct 21, 2004
Messages
69,802
Likes
62,555
#1
Unbelievable

Fannie Mae, Freddie Mac executives get big housing bonuses - Josh Boak and Joseph Williams - POLITICO.com

The Obama administration’s efforts to fix the housing crisis may have fallen well short of helping millions of distressed mortgage holders, but they have led to seven-figure paydays for some top executives at troubled mortgage giants Fannie Mae and Freddie Mac.


Read more: [URL="http://www.politico.com/news/stories/1011/67292.html#ixzz1cUVKl900"]http://www.politico.com/news/stories/1011/67292.html#ixzz1cUVKl900[/URL]
Click to expand...

Ketchup better get her arse down there...

Stephen Colbert Interviews Occupy Wall Street Protester, 'Ketchup' - New York Restaurants and Dining - Fork in the Road
 
#3
#3
#4
#4
So is this reasonable or not? Private firms are paying their executives millions as well. IMO, nothing to see here. The top of the pay chain will get theirs, regardless of the foreclosures and what is happening at the street level. Why make Fannie and Freddie special that they uphold to different standards?
 
#5
#5
rjd970 said:
So is this reasonable or not? Private firms are paying their executives millions as well. IMO, nothing to see here. The top of the pay chain will get theirs, regardless of the foreclosures and what is happening at the street level. Why make Fannie and Freddie special that they uphold to different standards?
Click to expand...

1. They are not private companies - they are quasi-governmental orgs. (the bonuses are tax dollars)

2. They are substantially supported by tax payer dollars which they have not paid back and they continue to receive. (the bonuses are tax dollars)

3. They are in conservatorship (I believe) under control of Federal regulators.

In short, this is not a private company that is doing as they please. These are government-lite orgs that are still sucking in federal tax dollars and are working through essential bankruptcy. Big difference.
 
  • Like
Reactions: 3 people
#6
#6
At some point you become indifferent to political corruption and mismanagement its so rampant, but that is enough to get my blood boiling.
 
#7
#7
volinbham said:
1. They are not private companies - they are quasi-governmental orgs. (the bonuses are tax dollars)

2. They are substantially supported by tax payer dollars which they have not paid back and they continue to receive. (the bonuses are tax dollars)

3. They are in conservatorship (I believe) under control of Federal regulators.

In short, this is not a private company that is doing as they please. These are government-lite orgs that are still sucking in federal tax dollars and are working through essential bankruptcy. Big difference.
Click to expand...

Yeah, but in name only. Isn't all this companies/orgs/quasi-gov business cut from the same cloth? The only difference I see is a more direct relationship with government. Private companies do the same thing with political action committees and lobbyiests and instead of getting paid directly with tax payer dollars, they are getting paid with advantageous legislation.

I hear what you're saying, and naturally makes sense on the surface. But in the end, it is all the same IMO. I'm just as outraged as you, but I'm not as selective. Whether it is Fannie/Freddie/BoA/etc..etc...etc...the executives and CEOs (minus some of course) are getting paid huge amounts of bonuses and money that isn't exactly relative to company performance in every instance. I don't want to sound like I have a problem with executive pay. It is what it is and shareholders believe the market demands it. Good for them...but it doesn't mean I have to agree with how it all shakes out in the end, Fannie/Freddie included.
 
#8
#8
I get you gist but to me the private vs public or quasi-public is a big deal philosophically. With the possible exception of AIG, we as tax payers did not directly fund large bonuses to firms.

Fannie and Freddie are taking more Fed monies than any of those WS firms and they are not paying it back. Most of the WS firms that were "bailed out" were not bailed out. They were forced to take money, held it the requisite time then paid it back with interest. These companies while they may have been bad for the economy were at least private and the bonuses were at the expense of the owners.

F&F were part of the problem, have required massive (and continue to require massive) infusions of TP monies and that money is used to pay bonuses. We are paying but we are not owners. The shareholders ain't paying - the American public is.

There is no reason for F&F to be govt backed. They are clearly too big to fail yet Dodd-Frank which was supposed to prevent this crap codifies their existence.

At a minimum it is a degree of magnitude worse due to the real losses suffered by the tax payers (as opposed to actual gains for most of TARP) and the government ownership.
 
  • Like
Reactions: 1 person
#9
#9
inflation%20behind%20the%20curtain(1).png


catalino.jpg


gss9j.jpg


hippyparent.jpg
 
#10
#10
Mortgage finance giant Freddie Mac said on Wednesday it will seek an additional $6 billion from U.S. taxpayers following its worst quarterly loss this year.

News Headlines
 
#13
#13
would this not be money laundering if done by anyone but the US govt? You know the F&F execs aren't putting that money behind Repub candidates
 
#14
#14
rjd970 said:
So is this reasonable or not? Private firms are paying their executives millions as well. IMO, nothing to see here. The top of the pay chain will get theirs, regardless of the foreclosures and what is happening at the street level. Why make Fannie and Freddie special that they uphold to different standards?
Click to expand...

Because they are not private companies. This is gov't meddling in mortgages where they don't belong. This is the BS that got us in this housing bubble we have YET to climb out of. It's amazing to me that Fannie & Freddie virtually got off scott-free with no real changes. It shows me that politicians are not serious about fixing anything in the system.

The dirtiness inside Fannie and Freddie goes back a while.

Business & Technology | Franklin Raines to pay $24.7 million to settle Fannie Mae lawsuit | Seattle Times Newspaper
 
#15
#15
guess that $6bil wasn't quite enough

Fannie Mae taps $7.8 billion from Treasury, loss widens | Reuters

Fannie Mae has now drawn $112.6 billion in bailout funds from the Treasury Department since being seized by the government in 2008 as mortgage losses mounted, and it has returned $17.2 billion to taxpayers in the form of dividends.

Their regulator estimates that the bailout could reach about $193 billion through 2014, with dividend payments taken into account.
Click to expand...
 
#23
#23
I just don't understand why this isn't headline news - is it because people expect the government to be screwing us?
 
New posts
You must log in or register to reply here.

VN Store



Back
Top