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Frank: Can’t Stop Fannie/Freddie Bonuses

From our friends at CNS News:

Barney Frank Says Multi-Million Dollar Bonuses for Government-Owned Freddie, Fannie ‘Too High’–But Nothing Can Be Done About It

By Nicholas Ballasy, Video Reporter

Friday, January 15, 2010

(CNSNews.com) — The Obama administration recently approved base salaries of $900,000, plus $3.1 million in deferred payments, and another $2 million in bonuses for the CEOs of the failed mortgage giants Fannie Mae and Freddie Mac. When asked if tax dollars should pay those bonuses or if they should be cancelled, the chairman of the House Financial Services Committee, Rep. Barney Frank (D-Mass.), told CNSNews.com that the bonuses were “too high” but “nothing can be done now.”

The $6-million compensation packages were approved by the Treasury Department and the Federal Housing Finance Agency, and made public on Dec. 24, 2009, Christmas Eve.

When CNSNews.com asked whether the bonuses should be paid or cancelled, Rep. Frank said:  “No, I thought they were too high. Again, we had some language in the bill we passed that still would have been administered by them but would have put some limits on them.”  Frank spoke with CNSNews.com at a Capitol Hill press conference on executive compensation on Wednesday.

Frank was referring to the bill H.R. 1586, proposed in March of 2009. It would have imposed a 90 percent tax on bonuses issued to executives at companies receiving funds from the Troubled Asset Relief Program (TARP), which is part of the $700 billion Emergency Economic Stabilization Act of 2008.

Fannie Mae and Freddie Mac received money from TARP, and the federal government seized control of the mortgage firms in September 2008.

The Senate version of the bill referenced by Rep. Frank is  S. 651, which would impose an excise tax on both the employee and entity equal to 35 percent  of the bonus issued…

The federal government for all intents and purposes owns Fannie Mae and Freddie Mac.

So why can’t Barney Frank and the rest of the Democrats control their bonuses?

Is Mr. Frank worried that his (former?) ‘partner,’ who was/is a Fannie Mae executive might somehow suffer?

This article was posted by Steve on Friday, January 15th, 2010. Comments are currently closed.

13 Responses to “Frank: Can’t Stop Fannie/Freddie Bonuses”

  1. White_Polluter says:

    I heard that Obama wants the banks to pay for their new “fees” the right way, by reducing their employee’s bonuses. Maybe I’m just a little slow, but I thought that meant that Franklin Raines would be giving back some of his $90 million remuneration when Fannie and Freddie reported those fictitious profits back in the early 2000’s. Am I missing something?

    Say, where’s the story on here about Scott Brown and the Massachusetts Senate Race. Last I saw he was in a dead heat. Methinks he needs some money and a link to his sight would be appropriate. Might be our best shot at stopping Obamacareless.

    • proreason says:

      “Am I missing something?”

      yeh, you’re missing that Frankling Raines was in on the scam, along with Jim Johnson, Drooling Barney, Chris Dudd and a host of other Democrat criminals.

      I’m goin to be really really pissed if we don’t go back to prosecute those guys when we take the country back.

    • White_Polluter says:

      Just listened to the clip again. It appears I was mistaken. It was the Republicans’ fault. As Barney so clearly states on the tape, the Republicans held up the legislation limiting bonuses for which Chris Dodd was “unfairly criticized” and now it is just too late to do anything about it. I’ve never heard Barney blame the Republicans before. Boy, I wish the Democrats had been in control of congress the last few year….oh, wait, they were???

  2. MinnesotaRush says:

    I’m guessin’ there’ll be buses of protesters and news media people swarming over to these folks’ houses this weekend like they did with all the other CEO’s and bonus receivers before, huh.


    Hell .. as I recall, didn’t our political leaders threaten to take back their bonuses by taxing them 100% (and more).

    These disgusting politicians are pathological!

  3. Reality Bytes says:

    What may be in Bhaney Fwankths closet boggles the mind.

  4. This video is still one of the finest tutorials on the Democrats’ systemic corruption of Fannie & Freddie, for the benefit of their cronies, which led to an over inflated housing market and the sub-prime melt down.

    All the while vociferously thwarting any attempt by the Bush administration to strengthen oversight.

    Hey, Barney. How’s those criminal indictments coming along?

  5. Confucius says:

    Oh yes something can be done. These thieving fat cats can be retroactively taxed at 100% (or more).

  6. Liberals Demise says:

    Shall I say it……..”Pillow Talk?”

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