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Fannie, Freddie Executives Have Gotten $100M

From CNN’s Money.Com:

Fannie, Freddie execs score $100 million payday

By Chris Isidore
November 15, 2011

NEW YORK (CNNMoney) — Mortgage finance giants Fannie Mae and Freddie Mac received the biggest federal bailout of the financial crisis. And nearly $100 million of those tax dollars went to lucrative pay packages for top executives, filings show.

The top five executives at Fannie Mae received $33.3 million in 2009 and 2010, while the top five at Freddie Mac received $28.1 million. And each company has set pay targets of as much as $17 million for its top managers for 2011.

That’s a total of $95.4 million, which will essentially be coming from taxpayers, who have been keeping the mortgage finance giants alive with regular quarterly cash infusions since the Federal Home Finance Agency (FHFA) took control of the companies in September 2008.

Fannie CEO Michael Williams and Freddie CEO Charles Halderman, each received about $5.5 million in pay for last year, and they could receive more when their final deferred compensation for 2010 is set. All the executives receive a significant portion of their pay in the year or years after they earn it.

If it can be said that they ever ‘earned’ it.

The CEOs’ pay targets for 2011 are about $6 million a piece

The latest cost estimate from FHFA is that the two bailouts will end up with a net cost to taxpayers of about $124 billion through 2014, though that figure could rise as high as $193 billion. Even the lower cost estimate will make it the most expensive bailout of the financial crisis — far more costly than bailing out the nation’s banks or automakers.

The bank bailout was not "expensive" at all, in the end. It actually made a profit for the government. The (Democrat forced) auto bailouts, on the other hand, are a different story.

The CEOs and the other top executives at Fannie and Freddie get all their pay in cash, and none of it in company stock , which is generally deemed worthless.

Because they are doing such a great job with the company.

The company filings that disclosed the pay back in February also defended the pay based on the work they had done.

Fannie’s filing said that under Williams’ leadership, the company "made solid progress in managing credit losses on its pre-2009 book of business, acquired a 2010 book of business with a strong credit profile that is expected to be profitable, and achieved substantial progress in making the company more operationally disciplined and efficient."

Which is why they keep needing more and more taxpayers’ billions.

This article was posted by Steve on Tuesday, November 15th, 2011. Comments are currently closed.

2 Responses to “Fannie, Freddie Executives Have Gotten $100M”

  1. Petronius says:

    Seems nothing has changed. This is a throwback to the glory days of pre-subprime meltdown and the rip-offs by Franklin Raines and James Johnson.

    The only thing that’s missing is the “Friends of Angelo” VIP club.

    So why am I not surprised?

    Memo to Gov. Rick Perry : About that list of Federal agencies you’d want to abolish . . . .

  2. tranquil.night says:

    Sen. Jim DeMint: Repeating Mistakes

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