Former executives at Fannie and Freddie stand to collect big paychecks

[Cutty1102]

This is outrageous!!

Over the years, Fannie Mae and Freddie Mac showered riches on many winners: their executives, Wall Street bankers and Washington lobbyists. Now the foundering mortgage giants are leaving some losers in their wake, notably their shareholders, rank-and-file employees and, in the worst case, American taxpayers.

But even after the government seized the mortgage finance companies on Sunday and dismissed their chief executives, the companies' outgoing leaders could see big paydays — a prospect that angers many investors, particularly because ordinary stockholders could be virtually wiped out.

Under the terms of his employment contract, Daniel Mudd, the departing head of Fannie Mae, stands to collect $9.3 million in severance pay, retirement benefits and deferred compensation, provided his dismissal is deemed to be "without cause," according to an analysis by the consulting firm James F. Reda & Associates. Mudd has already taken home $12.4 million in cash compensation and stock option gains since becoming chief executive in 2004, according to an analysis by Equilar, an executive pay research firm.

Richard Syron, the departing chief executive of Freddie Mac, could receive an exit package of at least $14.1 million, largely because of a clause added to his employment contract in mid-July as his company's troubles deepened. He has taken home $17.1 million in pay and stock option gains since becoming chief executive in 2003.

Both executives stood to make millions more from restricted stock grants and options, but those awards are now worthless because of the plunge in the companies' share prices. Even so, their past pay — and the idea that they might receive more — irks some investors.

http://www.iht.com/articles/2008/09/08/business/08scorecard.php

 

[torchthebitch]

Quelle surprise!

 

[Karen Kraft]

... and why shouldn't they?

Working long hours, putting the health and safety of America's housing market above all other concerns, such as the value of their respective institutions, providing a service not only to the American people but to their shareholders as well!

Who could have predicted that a couple of community-spirited organizations would fall upon hard times? Notwithstanding a few, totally understandable miscues here and there, these fine folks deserve not only their annual compensation packages but some pretty fine golden parachutes as well! After all, fare is fair!

 

[Odd_ball]

More evidence that titles and position are more important than actual work.

 

[Cap’n AMatrixca]

Don't stop with the executives, this bleeds over into the rest of the Democrat party, not just these members, there's ACORN and Barack Huseein Obama up at the top of the list, they only want to look at a subset of Democrats on the take.




DO NOT BE FOOLED by simple misdirection and wealth envy; don't be like their constituents!




Hold the Democrats responsible for this and the PONZI SCHEME called SOCIAL SECURITY that they also created for their benefit and votes because we're on real thin ice here people....

 

[Cap’n AMatrixca]

More evidence that titles and position are more important than actual work.

Like "Community Organizer" for ACORN?

 

[Karen Kraft]

Don't stop with the executives, this bleeds over into the rest of the Democrat party, not just these members, there's ACORN and Barack Huseein Obama up at the top of the list, they only want to look at a subset of Democrats on the take.




DO NOT BE FOOLED by simple misdirection and wealth envy; don't be like their constituents!




Hold the Democrats responsible for this and the PONZI SCHEME called SOCIAL SECURITY that they also created for their benefit and votes because we're on real thin ice here people....

Wait. Don't tell me; let me guess:

You and BB touched tongues over the weekend, right?

 

[Cap’n AMatrixca]

No, but this is one of times when, quick story...






I'm fighting my instructor at a tournament where it was "top-of-the-building" rules, if you stepped out, the other guy got a point. We both fought out and I yellled and pointed at his feet, then jumped in when they looked. I got the point.

Watch who's yelling and pointing the loudest, they have the most at stake...

Get the point?

 

[Odd_ball]

Like "Community Organizer" for ACORN?

I'm sure any "respectable "corporate CEO wouldn't touch that position with a 10 foot pole.

It involves meeting with the COMMUNITY!

AHHHHHHHHHH! DIRTY UNWASHED MASSES!

MUST GO TO SPA AND GOLF COURSE IMMEDIATELY!

 

[hogjack]

Naysayers and nitpickers!!!!

Executives skilled enough to drive share prices down 90 percent in a year while wiping out $70 billion of shareholder value are a rare, rare breed.

In fact, their compensation does NOT reflect their achievements.

 

[hogjack]

You and BB touched tongues over the weekend, right?

busybody has a curiousity about humans. It might have happened.

 

[Cap’n AMatrixca]

When the Deomcrats set that up, they told em they would cover their losses...





Cover me! Ahm lookin' for a lover who can come on in and cover me!





Quit giggling Barney... You better get back to shouting and pointing...




Hysterically girl!

 

[Cap’n AMatrixca]

busybody has a curiousity about humans. It might have happened.

okay, rlamo...

 

[ImSinister]

... and why shouldn't they?

Working long hours, putting the health and safety of America's housing market above all other concerns, such as the value of their respective institutions, providing a service not only to the American people but to their shareholders as well!

Who could have predicted that a couple of community-spirited organizations would fall upon hard times? Notwithstanding a few, totally understandable miscues here and there, these fine folks deserve not only their annual compensation packages but some pretty fine golden parachutes as well! After all, fare is fair!

Anybody REALLY doing their job could have predicted this. I am in the industry and my colleagues and I talked about the coming doom for over a year before it collapsed. I don't claim to have foreseen the depth and breadth of it all but I sure knew it was coming. I would immediately call for the FBI to investigate the top dogs at all companies in this industry and bring criminal charges where appropriate - and believe me they would find plenty wrongdoing.

 

[Ishmael]

Both institutions have been 'shucking the rubes' for years now. They have operated without any oversight to speak of and with no accountability to the stock holders.

Having what is, in effect, an unlimited line of credit they have successfully avoided any of the pressures that would have been brought by a competive market. Not to mention their advantage in the secondary foriegn investment market.

It should come as no surprise to anyone that they've been 'cooking the books.' And they didn't even need the willing cooperation of Arthur Anderson to pull it off.

There is some good news, mortgage rates are going to fall. The bad news is that it's going to be a lot more difficult to qualify. Look to some traditional democrat constituent groups to scream bloody murder. If the democrat congress caves on the tighter loan requirements, look for this to be drawn out for a considerable length of time. The taxpayer will not only have to absorb the existing bad loans, but also pay for new questionable loans that will be underwritten in the future based on nothing more that constituent pressure.

What's the solution? Well, for the time being the government taking control is the only prudent action. Long term is to build balanced portfolios of the existing loans and auction them off to the market in a measured and reasonable manner. Then disband both organizations.

Immunity from oversight may work for pro baseball, but it sucks in the financial markets.

Ishmael

 

[KingOrfeo]

Don't stop with the executives, this bleeds over into the rest of the Democrat party . . .

Wait a minute. Fannie Mae and Freddie Mac, while government sponsored enterprises, were never in any sense arms of the government, let alone the Democratic Party. Fannie Mae was a New Deal creation, Freddie Mac when Nixon was president. They were private institutions -- much more private than the Federal Reserve, at any rate -- run by ordinary business executives with no necessary partisan affiliations, and run for profit like every other financial institution, distinguished from others only by an apparently ill-defined guarantee of government backing. How does their failure in any way reflect on the Democratic Party?

. . . not just these members, there's ACORN and Barack Huseein Obama up at the top of the list, they only want to look at a subset of Democrats on the take.


DO NOT BE FOOLED by simple misdirection and wealth envy; don't be like their constituents!




Hold the Democrats responsible for this and the PONZI SCHEME called SOCIAL SECURITY that they also created for their benefit and votes because we're on real thin ice here people....

And you have now progressed from nonsequitur to illucidity. Hallucinations just ahead.

 

[richard_daily]

Wait a minute. Fannie Mae and Freddie Mac, while government sponsored enterprises, were never in any sense arms of the government, let alone the Democratic Party. Fannie Mae was a New Deal creation, Freddie Mac when Nixon was president. They were private institutions -- much more private than the Federal Reserve, at any rate -- run by ordinary business executives with no necessary partisan affiliations, and run for profit like every other financial institution, distinguished from others only by an apparently ill-defined guarantee of government backing. How does their failure in any way reflect on the Democratic Party?

Oh my, how the right wingers love their scapegoats...

 

[Odd_ball]

Oink oink...porkers.

 

[LadyFunkenstein]

That the executives will receive a payout is pretty well the least offensive part of the NATIONALIZATION of Freddie Mac and Fannie Mac. We the People are getting dicked and not in a good way. Of course we know that common and even preferred stockholders just saw their vaule wiped due to share dilution... forever, let's get real. But it gets worse.

WE are footing the bill to pump up Fannie/Freddie mortgage securities increases to 1.7 trillion. WE will be printing printing funny money to make this happen. (That's been helping the dollar along for the last few years, hasnt' it?) And of course the plan calls for Fannie/Freddie to decrease holdings beginning in 2010 by 10% a year, selling off to legitimate securities to financial institutions... you know, all of the major ones who fucked up in the first place by repackaging, buying and selling shit loans in the first place. THAT, my friends, is why the financial stocks bounced today. It wasn't a random thing, it wasn't because people felt good about the future of the mortgage crisis. It was because THERE IS MONEY TO BE MADE AT BANK OF AMERICA. Mark my words, chart the stock of the big boys over the next 3 - 5 years... link to this then and if I am wrong I'll finally admit to be an asshole.

America loses again.

And most people do not have a fucking clue as to exactly what is going down.

 

[Ishmael]

That the executives will receive a payout is pretty well the least offensive part of the NATIONALIZATION of Freddie Mac and Fannie Mac. We the People are getting dicked and not in a good way. Of course we know that common and even preferred stockholders just saw their vaule wiped due to share dilution... forever, let's get real. But it gets worse.

WE are footing the bill to pump up Fannie/Freddie mortgage securities increases to 1.7 trillion. WE will be printing printing funny money to make this happen. (That's been helping the dollar along for the last few years, hasnt' it?) And of course the plan calls for Fannie/Freddie to decrease holdings beginning in 2010 by 10% a year, selling off to legitimate securities to financial institutions... you know, all of the major ones who fucked up in the first place by repackaging, buying and selling shit loans in the first place. THAT, my friends, is why the financial stocks bounced today. It wasn't a random thing, it wasn't because people felt good about the future of the mortgage crisis. It was because THERE IS MONEY TO BE MADE AT BANK OF AMERICA. Mark my words, chart the stock of the big boys over the next 3 - 5 years... link to this then and if I am wrong I'll finally admit to be an asshole.

America loses again.

And most people do not have a fucking clue as to exactly what is going down.

That's what you get with government sanctioned entities. On to Health Care now.

Ishmael

 

[Cap’n AMatrixca]

Amen and pass the K-Y!

Stock picking guru Jim Cramer, who applauded the move by Paulson, admitted that Fannie and Freddie were in the back pockets of Democrats in Congress. Cramer is normally a big Democrat, though his opinions today indicate that he would be doing intellectual gymnastics to stay that way. These are the two lenders, by the way, that donated millions to Jesse Jackson's various racial organizations over the years. These are the two organizations that backstopped big liberal Anthony Mozillo as his Countrywide Mortgage Corporation sold "predatory" mortgages to undeserving (and apparently financially illiterate) borrowers over the years so he could hand out sweetheart deals to congressional Democrats like Chris Dodd and others.

http://www.americanthinker.com/blog/2008/09/fannie_and_freddie_gop_cleanin.html

 

[Cap’n AMatrixca]

Which Senate Democrats led the Filibuster on the Republican Reforms?

When the Republicans took control of the Congress, the Democrats vowed they would bring Washington DC to a stand-still. They vowed they would stymie the Republicans and return as quickly as possible to business as usual. On to Nationalized Health Care, they have a fool-proof plan THIS time...




Obama's a genius. Ask anyone...

 

[Cap’n AMatrixca]

Did you people think I was just whistling Dixie?

Fannie Mae's Patron Saint

Taxpayers are now on the hook for as much as $200 billion to rescue Fannie Mae and Freddie Mac, and if you want to know why, look no further than the rapid response to this bailout from House baron Barney Frank. Asked about Treasury's modest bailout condition that the companies reduce the size of their high-risk mortgage-backed securities (MBS) portfolios starting in 2010, Mr. Frank was quoted on Monday as saying, "Good luck on that," and that it would never happen.

There you have the Fannie Mae problem in profile. Mr. Frank wants you to pick up the tab for its failures, while he still vows to block a reform that might prevent the same disaster from happening again.

At least the Massachusetts Democrat is consistent. His record is close to perfect as a stalwart opponent of reforming the two companies, going back more than a decade. The first concerted push to rein in Fan and Fred in Congress came as far back as 1992, and Mr. Frank was right there, standing athwart. But things really picked up this decade, and Barney was there at every turn. Let's roll the audiotape:

http://online.wsj.com/article/SB122091796187012529.html?mod=opinion_main_review_and_outlooks

Of course, now I'm guilty of being a HOMOPHOBE!

 

[Cap’n AMatrixca]

We know more about the Palin Family than we do about the Countrywide collapse or Barack Obama's background because the Press always stops investigating when the answers come up Democrat.

Culture of corruption? Yes there is. Between the "Main-Stream" Beltway Media and the Democrat Party, you can no longer tell where they end or begin, so once again, I implore you, don't let them fool you with a rich white sacrifice, this time let's get to the root of the problem, too many Democrat Dinosaurs, I'm tired of watching them die in office.

In January of last year, Mr. Frank also noted one reason he liked Fannie and Freddie so much: They were subject to his political direction. Contrasting Fan and Fred with private-sector mortgage financers, he noted, "I can ask Fannie Mae and Freddie Mac to show forbearance" in a housing crisis. That is to say, because Fannie and Freddie are political creatures, Mr. Frank believed they would do his bidding.

And this is exactly what Mr. Frank attempted to prove when the housing market started to go south. He encouraged the companies to guarantee more "affordable" mortgages, thus abetting their disastrous plunge into subprime and Alt-A loans. He also pushed for, and got, an increase in the conforming-loan limits to allow Fan and Fred to securitize and guarantee larger mortgages. And he pressured regulators to ease up on their capital requirements -- which now means taxpayers will have to make up that capital shortfall.

But the biggest payoff for Mr. Frank is the "affordable housing" trust fund he managed to push through as one political price for the recent Fannie reform bill. This fund siphons off a portion of Fannie and Freddie profits -- as much as $500 million a year each -- to a fund that politicians can then disburse to their favorite special interests.

This is also why Mr. Frank won't tolerate cutting the companies' MBS portfolios. He knows those portfolios (bought with debt borrowed at taxpayer-subsidized rates) were a main source of Fannie's profits before the housing crash, and he figures that once this crisis passes they can do it again. And this time, his fund will get part of the loot.

 

[Cap’n AMatrixca]

The reason the Republicans came to power was that the Democrats were using their bank and post office to kite checks. We could understand that issue, this one's harder, but they're still basically stealing from us to give to their cronies.






Democrat business as usual with the assistance of a well-financed propoganda arm.