Report Criticizes High Pay at Fannie and Freddie

[alp227]

Source: The New York Times

Regulators have approved generous executive compensation at Fannie Mae and Freddie Mac, the taxpayer-backed mortgage finance giants, with little scrutiny or analysis, according to a report published Thursday by the inspector general of the Federal Housing Finance Agency.

The companies, whose fates are to be decided by Congress this year, paid a combined $17 million to their chief executives in 2009 and 2010, the two full years when Fannie Mae and Freddie Mac were wards of the state, the report found. The top six executives at the companies received $35.4 million over the two years. Since Fannie Mae and Freddie Mac were taken over in September 2008, the companies’ mounting mortgage losses have required a $153 billion infusion from taxpayers. Total losses may reach $363 billion through 2013, according to government estimates.

Charles E. Haldeman Jr., a former head of Putnam Investments, the giant fund management concern, joined Freddie Mac as its chief executive in 2009. He made $7.8 million for 2009 and 2010. Fannie Mae’s chief is Michael J. Williams, who has worked at the company since 1991. He received $9.3 million for the two years. Company officials declined to comment.

With hundreds of billions in government support necessary to keep the companies running, questions are arising about the nature of the pay packages and how performance goals are determined. The pay was approved by the housing finance agency, which is charged with conserving the assets of Fannie and Freddie on behalf of taxpayers.

Read more: http://www.nytimes.com/2011/04/01/business/01pay.html

[timefortherevolution]

1. I'm disgusted. But no longer can I be shocked when it comes to the corporate greed.

[louslobbs]

2. Now isn't that nice, taxpayers, some who have been out of work for years bail out Fann and Fred

who instead of being humble, grow a huge set of testicles in the face of what the majority are suffering and pay millions to their executives on our backs and right in our faces. How absolutely tone deaf and blind can they be? I guess they are more worthy than the lazy, don't want to work, unemployed and poor.

[ThomCat]

3. Wow! Paid to fail.

:grr:

The government can't find money to implement jobs programs but they have the cash lying around give to Fannie Mae and Freddie Mac for their executives. Lovely. x(

[The Northerner]

4. K&R

[Lance_Boyle]

5. Long past time for Fanny and Freddy to be put out to pasture.

Even better time to send them on to the glue factory.

They are parasitic entities that produce no value and consume vast resources. Pull the plugs ASAP. And maybe sue to recover some of those obscene paychecks the crooks at the top took home.

[sendero]

6. Yes.

.... this experiment has failed.

[rayofreason]

8. Some got tens of millions...

...while the housing market was set up to implode.

A bit of sunlight on the situation could be a great disinfectant. Then proceed with actions to recover the massive bonuses paid out to people who presided over a huge failure.

[No Elephants]

7. Ain't kinda sorta privatized grand?