Fannie, Freddie Plan to Pay $210 Million in Bonuses

[babylonsister]

Fannie, Freddie Plan to Pay $210 Million in Bonuses

By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, April 3, 2009; 6:20 PM


Fannie Mae and Freddie Mac, the mortgage finance companies under federal control, are planning to pay $210 million in retention bonuses to 7,600 employees over 18 months, the firms' regulator said today.

The Federal Housing Finance Agency said $51 million in payouts were given to employees in late 2008 and the remainder will come this and next year. The information was contained in a letter to Sen. Charles E. Grassley (R-Iowa.).

Fannie Mae and Freddie Mac's compensation plans drew scrutiny several weeks ago after American International Group paid $160 million in bonuses to members of the unit that brought the insurance giant down. The House passed legislation to significantly tax the AIG bonuses, though the measure has been stalled in the Senate.

Grassley and Rep. Barney Frank (D-Mass.) expressed concerns that Fannie Mae and Freddie Mac, which received over $50 billion in taxpayer dollars, would be paying bonuses. Frank called for bonuses to be withheld. In an earlier letter to Frank, the FHFA said about 3,500 employees at Fannie were getting an average payment of $32,000 and 4,000 employees at Freddie were getting an average of $24,000.

The maximum bonus for any employee will be $1.5 million, the regulator said. Freddie's bonuses are going to 80 percent of its employees, while Fannie's are going to 61 percent of its employees.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/03/AR2009040303061.html?hpid=topnews

[depakid]

1. The insanity just won't stop, will it?

Oh well, at least on the foreign policy front, things seem to be improving....

[prolesunited]

2. The president and congress need to stop this NOW

We can't even get by anymore and my tax money is going for these huge bonuses. The peasants are ready to revolt.

[babylonsister]

5. Maybe that's why Mr. Obama mentioned pitchforks in relation

to the financial industry today.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8318289

[Deja Q]

7. He also mentioned 'competitive disadvantage', though he wasn't talking about the United States.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=438173&mesg_id=438173

I'm still trying to figure that one out. With all the jobs being lost offshore, it seems the US is at a gigantic disadvantage right now. :shrug:

Unless Computerworld is known for making vapid tabloid news articles, written only to anger and confound people...?

[aquart]

3. NO.

I don't care wtf their plans are. If people won't do their jobs without bribes, they should leave. I'm sure plenty of places are hiring.

[maxsolomon]

4. at least the average bonus is going down

$210,000,000/7,600 = $27,631.57 average bonus.

my firm isn't paying ANY bonuses this year, and we're grateful to be "retained".

where do they think the employees are going to run off to?

[Igel]

9. Lots of bonuses "out there".

Congress got into the act before they decided it was an immoral act. At least it's a pittance--only 9 million dollars or so.

http://online.wsj.com/article/SB123854799133476409.html

Then again, it's not like it's taxpayers' money or anything. It's budgeted, after all.

[Enthusiast]

6. President Obama will get the blame. nt

[Historic NY]

8. WHAT?? where's my bonus.