Fannie Mae and Freddie Mac executives raked in over $35 million dollars in bonuses while sucking another $153 BILLION dollars out of taxpayers for being nothing more than an epic failure.
A report issued Thursday by the Federal Housing Finance Agency’s Office of the Inspector General shed some light on the following payoffs for incompetence, ineptitude or just plain theft of taxpayer dollars:
- At Fannie Mae (Federal National Mortgage Association), its chief executive officer received $9.3 million in total compensation in 2009 and 2010, the report reveals. The CEO is Michael J. Williams, who joined the company in 1991.
- At Freddie Mac (Federal Home Loan Mortgage Association), CEO Charles E. Haldeman Jr., former head of Putnam Investments, made $7.8 million in the two years since the company was taken over by the federal government.
- Fannie Mae’s chief financial officer made $4.6 million, and its chief accounting officer/general counsel received $4.5 million.
- At Freddie Mac, the CFO made $3.9 million, and the general counsel/secretary received $5.1 million
- In all, the top six executives made $35.4 million. Meanwhile, total losses at the two companies could reach $363 billion through 2013, according to government estimates.
So who just keeps on authorizing these huge bonuses for the wholesale theft and abuse of taxpayer dollars? What the Federal Housing Authority bureaucrats of course! Why does this kind of taxpayer dollar theft continue? It is called Crony-Capitalism and is explained in detail here.
The stated mission of the FHFA responsible for this kind of fraud would be laughable, if not for the seriousness of this longtime Fannie and Freddie theft of taxpayer dollars. Their mission is *supposed* to be, to ensure that the fat-cat bonuses paid out to Senior execs at Fannie and Freddie are “reasonable.” The taxpayers are on the hook for a total of $363 Billion dollars through 2013, and they give over $35 billion dollars to the people perpetuating this fraud under the guise of it being “reasonable?” The FHFA Inspector general now says that Fannie and Freddie should install written criteria and procedures for performance evaluation in order to figure out what bonuses, if any, would be “reasonable” for these crony-capitalists. Oh Really? Why in the hell isn’t that type of system already in place ? So they just take $35 million tax dollars in bonuses, with no system in place to see if they actually earned it, and Congress is sitting on their hands letting this continue for decades.
Darrell Issa is the chairman of the House Government oversight committee, and where is he on this “oversight” of executive bonuses at Fannie and Freddie? I am getting sick and tired of all these theatrical investigations in Congress that NEVER end up accomplishing a damn thing! There is no stoppage of the theft of tax dollars over at Fannie and Freddie, even though we have seen what, 30, 40, or 50 so-called ” investigations ? ” If any action is ever taken, it is so ludicrous that it hurts me to even type it, such as giving someone a $50,000 fine for stealing 3 or 4 million in tax dollars.
U.S. taxpayers are on the hook for over $363 BILLION dollars through 2013, thanks to the corrupt fatcats over at Fannie and Freddie. Those same crony-capitalistic thieves were rewarded for their incompetence/ corruption with over $35 million dollars of your hard earned money. Think about that, as you write out that income tax payment check this month.
When President Barack Obama slammed Fat Cat Bankers for taking huge bonuses after taxpayer bailouts in Dec. of 2009, it caused quite a stir in the media. To quote the President from a CBS” 60 Minutes Interview:
“”I did not run for office to be helping out a bunch of fat cat bankers on Wall Street. They’re still puzzled why is it that people are mad at the banks. Well, let’s see,” he said. “You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it’s gone through in — in decades, and you guys caused the problem. And we’ve got 10% unemployment.”
Either Mr. Obama has a very short memory, or there have been some gaurantees of 2012 camapign cash to be delivered by these same “Fat Cats” when we look at a recent announcement regarding Bank Of America bonuses for 2010.
In an article at the charlotteobserver.com* I found this blazing headline today:
Bank of America gives $33 million in stock to 4 top executives.
“Bank of America’s top four executives, including chief executive Brian Moynihan, are getting stock grants worth a total of about $33 million, though the ultimate payouts will depend on future company performance.”
I must also say I haven’t seen this mentioned by anyone in the television media so far today. Either they are awfully slow, or they are just telling us, ” Nothing to see here folks just move on” once again. The Chief Executive at BOA made only $6 million dollars in 2009. I guess that was an off year based on the performance of BOA considering the taxpayer had to bail them out to the tune of an extra 20 billion in Jan 2009. So how did Mr. Moynihan, the CEO of BOA do in 2010? How about a total of about $10 Million bucks? Of course these bonuses are not in cash now, as that would make it too obvious that the Fact Cats are getting fatter, so they are willing to accept stock in the company. It gets even more troublesome even further down in the charlotte observer piece as we see this little bit of information:
” Three of the executives – chief financial officer Chuck Noski, global banking and markets executive Tom Montag and consumer banking head Joe Price – are also each receiving nearly $1 million stock grants that are similar to a cash bonus, according to a securities filing Monday.
Montag, a Merrill Lynch and Goldman Sachs alumnus who runs the Wall Street side of the company, could make the most money, about $16.1 million. That’s actually down from 2009, when he reaped $29.9 million, mostly from stock awards granted as part of his Merrill contract.”
So these bonuses are awarded in 2010 and parts of it are for future company performance. Well in 2009, BOA lost $2.2 Billion and in 2010 they lost $3.6 Billion dollars. Wow, these Cats are making $10 – 16 million dollar bonuses for posting almost $6 Billion in losses the last two years? That sure looks to me like they are doing just what Obama said he was going to put a stop to in 2009. What was that leglislation called that we were told would put an end to this Wall Steet Fat- Cattery? Oh yes that would be the famous Dodd-Frank Bill, also know as the vaunted Financial Reform Bill. So if we believe Obama and the Democrats of 2008- 2009, these FatCats at BOA are breaking the law right? What say you Mr. President?