AIG bonuses BAD, Fannie Mae bonuses GOOD? - PeachParts Mercedes-Benz Forum

LUVMBDiesels · #1 03-18-2009, 04:50 PM

Where is the logic of this?

4 Fannie Execs Each to Get $400K in Govt.-Okayed Bonuses
2:22 PM ET: At least four Fannie Mae executives are slated to receive more than $400,000 in bonuses each this year as a result of the company's government-approved retention program, The Post's Zach Goldfarb reports.

The executives include chief operating officer Michael Williams ($611,000), deputy chief financial officer David Hisey ($517,000), and executive vice presidents Thomas Lund ($470,000) and Kenneth Bacon ($470,000).

Each of these executives earned about $200,000 in retention payments last year and salaries ranging from $385,000 to $676,000.

Fannie Mae's chief executive, Herbert M. Allison, did not receive any salary or retention payments. He received $60,000 in compensation related mostly to reimbursements.

Fannie Mae, which suffered $59 billion in losses last year, has requested $15 billion in taxpayer assistance, and has said it expects to need plenty more.

All major compensation decisions are authorized by Fannie Mae's federal regulator, the Federal Housing Finance Agency, which created a retention program when the company was seized last September to hold on to key employees.

Under the program, employees are eligible to receive up to 150 percent of their salary in bonuses this year, but many will receive far less than that, and some might receive zero, depending on how central they are deemed to the company's task.

The Federal Housing Finance Agency didn't immediately supply information on how much in bonuses would be given this year to Fannie Mae employees or whether they would be reevaluated after the controversy surrounding bonus payments at American International Group.

Freddie Mac has yet.to disclose its retention payments. It is expected to do so in the coming months, and its payments should resemble those at Fannie Mae.

-- Frank Ahrens

PaulC · #2 03-18-2009, 05:30 PM

Well, you have to spend some money if you want to keep the best and the brightest at the helm.

tankdriver · #3 03-18-2009, 05:55 PM

How long have those people been there? Are they necessary for Fannie's restructuring/rebuilding? Does anyone have any control of what the FHFA does in this regard?

Gurkha · #4 03-18-2009, 11:21 PM

http://www.examiner.com/x-268-Right-Side-Politics-Examiner~y2009m3d17-Obama-Received-a-101332-Bonus-from-AIG

Obama Received a $101,332 Bonus from AIG

tobybul · #5 03-19-2009, 06:39 AM

Quote:

Originally Posted by PaulC

Well, you have to spend some money if you want to keep the best and the brightest at the helm.

Why?? Where are they gonna go if they leave???

THis is a bunch of BS. The nerve to even consider bonuses with bail out money!!! The entire country is going thru rough times and these blokes want to fatten their wllets??

Medmech · #6 03-19-2009, 07:09 AM

The people there are new, the old were tossed out the door on Sept 17th. Too be honest the current Fannie leadership is making some aggressive moves in the right direction.

I can't say the same about Freddie.

dynalow · #7 03-19-2009, 07:34 AM

AIG Bonus Tax Bill on Fast Track in House

In the face of increasing outrage, House lawmakers will consider legislation on March 19 that would tax the bonuses paid to employees of American International Group (AIG) and other firms that received bailout money under the Troubled Asset Relief Program (TARP). House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., introduced legislation to impose a 90-percent tax on bonuses received by married individuals with adjusted gross incomes of more than $250,000 ($125,000 for married filing separately). "When you weigh the harm that AIG and other bad actors have done to the system, our economy, and American families, with the concerns regarding the precedent of using the tax code, there is no question this legislation is the best decision we can make," said Rangel.

Under the legislation (HR 1586), the tax would only affect employees of companies that received more than $5 billion in federal TARP funds. The legislation would affect bonuses received after January 1, 2009, and would cover companies that received more than three-fourths of financial rescue funds already distributed, according to the committee. The legislation would not affect commissions, welfare or fringe benefits, or expense reimbursements. It would also apply to employees of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Ways and Means member Mike Thompson, D-Calif., joined Rangel and other committee members to call for swift action by Congress to eliminate the bonuses. "It goes against the ideals of capitalism to reward the people that helped create this economic mess. It's even more outrageous that taxpayers are footing the bill," he said. The AIG bonuses are sure to be a topic of discussion at a Ways and Means Oversight Subcommittee hearing on March 19. Neil Barofsky, special inspector general for the TARP, and Gene Dodaro, acting comptroller general of the Government Accountability Office, are scheduled to testify.

******

Congress to AIG : "Sorry fellas, we tried to slip one past the taxpayers and hand you bonuses in the last bailout bill. But,

, we had no idea this would cause the fury it did. So, now, like the chicken scrabble cowards we all are, we're throwing you under the bus. All in the name of capitalism and fair play ..and saving our own soft white arses."

That about sums it up in my opinion.

Oh, and Sen. Dodd, you're one of the biggest ****** in the building.

Botnst · #8 03-19-2009, 11:11 AM

You're doing a hell of a job, Chris Dodd!

PaulC · #9 03-19-2009, 11:16 AM

Quote:

Originally Posted by tobybul

Why?? Where are they gonna go if they leave???

THis is a bunch of BS. The nerve to even consider bonuses with bail out money!!! The entire country is going thru rough times and these blokes want to fatten their wllets??

Hey, remember that a fair number of U.S. small businesses cater to the affluent. For every $50 million in government-supported bonuses that is doled out, one more yacht is built somewhere in New England.

Only someone who is not a true patriot and callous to the plight of the American unemployed would oppose these bonuses.