Fannie & Freddie Bonuses

[Rommey]

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.

[somdrenter]

Originally Posted by Rommey

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.

Bonuses and bailouts are now the norm. Previous examples have now set precedence.

[Lenny]

Originally Posted by Rommey

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".

...Barney Fwank. He takes care of his butthole buddies.

[Rosehaven]

I wonder if Congress will hold hearings for Fannie and Freddie as they did for the AIG heroes? I just can't understand why Congress can't write a law that clearly states, "if you take taxpayer dollars, all bonus are off." Then, it's up to the CEO's of these companies to gather the employees and say, "look, we're in a tough time right now. Hang with us and the bonus will start again when we no longer need taxpayer $$." I may be naive (after all I'm a flaming liberal) but I think people would hang with the company and have an incentive to make things work.

[Larry Gude (Premo)]

Originally Posted by Rosehaven

I wonder if Congress will hold hearings for Fannie and Freddie as they did for the AIG heroes? I just can't understand why Congress can't write a law that clearly states, "if you take taxpayer dollars, all bonus are off." Then, it's up to the CEO's of these companies to gather the employees and say, "look, we're in a tough time right now. Hang with us and the bonus will start again when we no longer need taxpayer $$." I may be naive (after all I'm a flaming liberal) but I think people would hang with the company and have an incentive to make things work.

Do you know what Fanny/Freddy are? The Federal Reserve? They are government sponsored enterprises, GSE's. Read up some on what that means. It used to be called 'socialism'.

It is what Obama is doing to the economy as a whole right now. It means you can do whatever the heck you want with a company as long as your political masters approve. And you'll pay hell if they don't. Or are having a bad day. Or need to sacrifice someone on the alter of faux outrage to satisfy the mob.

[Rosehaven]

Very good pontificating but you missed the point:
(1) Fannie and Freddie are indeed part of the gov't and rely on gov't funds bbbuuttt...they also make money. If they are unable to make money, then they shouldn't be getting bonuses.

(2) Congress dragged all these clowns up for the a speaking to and I'm surprised these guys aren't in the next group---of course that may still happen.

Thank you for the warning about socialism. Seems to me that the government paying medical bills for senior citizens could be considered that too---since their bills aren't close to what was paid in. But I digress.......

[Larry Gude (Premo)]

Originally Posted by Rosehaven

Very good pontificating but you missed the point: How is it pontificating if I suggest YOU read up on the subject for yourself? Pontificating is TELLING you what conclusion to come to.
(1) Fannie and Freddie are indeed part of the gov't and rely on gov't funds bbbuuttt...they also make money. If they are unable to make money, then they shouldn't be getting bonuses. Given that they do not operate as a business, they, like the army or the House of Representatives can't be judge accurately.

(2) Congress dragged all these clowns up for the a speaking to and I'm surprised these guys aren't in the next group---of course that may still happen.

Thank you for the warning about socialism. Seems to me that the government paying medical bills for senior citizens could be considered that too---since their bills aren't close to what was paid in. But I digress.......

Government paying someones bills is one thing. As voters, we can debate the merits as to what our money should be spent on. Government being in the business of health care, as we seem to be heading to, is a whole other animal.

Dontcha think?