Quote:
Freddie, Fannie bonuses total $120M
WASHINGTON (AP) — Mortgage finance giants Fannie Mae and Freddie Mac plan to pay more than $210 million in bonuses through next year to give workers the incentive to stay in their jobs at the government-controlled companies.
[snip]
Keeping the companies "operating at full speed was best for the housing markets and best for the economy," Lockhart wrote. "That would only be possible is we retained the Fannie and Freddie teams."
But many lawmakers have little sympathy for that argument amid a public outcry over roughly $165 million in bonuses paid out last month by bailed-out insurance giant American International Group.
Earlier this week, the House passed a bill that aims to keep bailed-out financial institutions from paying their employees hefty bonuses after lawmakers had second thoughts about their vote two weeks ago to tax the bonuses away. The bill would allow the bonuses if the Treasury Department and financial regulators determine they are not "unreasonable or excessive." more here... |
What's the difference in the AIG bonuses and the F&F bonuses? Will these be taxed at the special 90% rate as well? I wonder how the Treasury will determine what is "unreasonable or excessive".
Let's see...
AIG gets $170B and pays out $165M in bonuses. That's roughly $1 bonus for every $1,000 in bailout.
F&F gets $60B and pays out $210M in bonuses. That's roughly $3 bonus for every $1000 in bailout.
There should be three times the outrage over the F&F bonuses, but we are barely hearing a whimper.