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A House committee approved a suspension of bonus packages for executives at Fannie Mae and Freddie Mac, the two mortgage firms currently under the control of the U.S. government.
The House Financial Services Committee, responding to lawmaker anger over compensation at Fannie Mae and Freddie Mac, approved a measure that would suspend the compensation packages for executive officers at the companies. The bill also would require employees of the two firms to be moved onto a pay scale that lines up with federal financial regulators including the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency.
“Awarding lavish pay packages to the heads of these companies that have accepted $170 billion in taxpayer cash can’t be defended,” Representative Spencer Bachus of Alabama, the panel’s chairman and sponsor of the bill, said today.
The panel approved the measure 52-4, sending it to the House floor.
The committee’s approval comes amid heightened criticism of the companies’ bonuses and pay. Edward J. DeMarco, chief regulator of the two firms, approved packages in 2009 that awarded a total of $17 million over two years to chief executive officers Michael J. Williams of Fannie Mae and Ed Haldeman of Freddie Mac.
Compensation for the companies’ top six executives totaled $35 million for 2009 and 2010, according to a report from the FHFA Office of Inspector General.
Pay to Decline
DeMarco, acting director of the Federal Housing Finance Agency, has argued that the compensation is necessary to attract and keep executives and employees with the skills to manage a portfolio of more than $5 trillion in mortgage assets. He told senators today that pay will decline over time.
“My plan for executive compensation is to continue to seek opportunities for gradual reductions, particularly when executives leave,” DeMarco said in written testimony today to the Senate Committee on Banking, Housing and Urban Affairs.
“This approach is consistent with the administration’s notion of a gradual wind down” of Fannie and Freddie, which are now in government conservatorship, DeMarco said.
BONUSES!? For what?
The entire idea that they 'need' the bonuses to attract the 'best and brightest' is easily cast aside by the fact that anyone who is of the 'best and brightest' would NOT be in this mess! The 'best and brightest' would have seen, as did many of us among the great unwashed masses, that what they were doing was unsustainable. Fannie & Freddie became a house of cards that caved in and killed our economy.
And they want a bonuses for THAT? No way, no way in hell!
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Schteveo
6 comments:
Woof Woof!
That's my dog impression.
Yeah, but what kind of dog?
Wuff Wuff.
That's my other dog impression.
You must be dog tired after all that barking.
You are making the incorrect assumption that the bonuses are going to the same people that caused the mess in the first place. These are new people that were brought in to (hopefully) correct a HUGE problem. If you cannot offer appropriate compensation to get qualified people, you might as well promote the janitor to the position.
NannerMouse, Clinton caused the problem. Him, Franklin Raines and Barney D. Fagg et.al. Right after Der Schlick was through scammin the US he was on an interview with Katie Koric (or however you spell the little cunts name). She asked him (really hardballish) what he thisnks his leqacy to the us will be and he SAID "IT WILL BE THAT I PRESSURED FANNY AND FREDDY TO MAKE SUB PRIME LOANS TO PEOPLE SO THEY CAN HAVE THe 'AMERICAN DREAM'. This, Nanner Turd means that 'imputed income', food stamps and welfare counted as income to buy a house. THIS IS WHY WE ARE WHERE WE ARE. I was In Chicago and saw all the welfaer coons buying houses and never moving in.. WHY? Cause they would close on the house, druive up with a trailer and take everything of value (they came with washers and driers etc.). Then sell them, buy more drugs and go back to the tenement from whence they came.
Been there, saw that and capped a few.
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