Mar 19 2009
More Taxpayer Paid Bonuses For Failed CEOs
Here we go again – the power brokers raiding the treasury to line their pockets:
Fannie Mae is due to pay retention bonuses of between $470,000 and $611,000 this year to some executives, despite enormous losses at the government-backed mortgage company. Fannie’s main rival, Freddie Mac, also plans to pay such bonuses but hasn’t yet provided details.
…
For 2008, Fannie and Freddie reported combined losses of about $108 billion, largely stemming from a surge in home-mortgage defaults. The Treasury has agreed to provide as much as $200 billion of capital apiece to Fannie and Freddie in exchange for preferred stock. The two companies have said they will need a combined $60 billion of that money to cover their losses so far.
See, these clowns lost so much money last that they cannot afford to pay bonuses from the mortgage payments they skim, so now they have to go to the treasury to get assuage their greed. Why should we be surprised? They made millions of our mortgage payments, and when that dried up they went after our tax payments. And this is just the tip of the ice berg that the USS Obama just ran into!
On Tuesday, Sen. Robert Menendez (D., N.J.) wrote to Treasury Secretary Timothy Geithner, asking him to “use every legal means available” to stop $3 billion in previously disclosed retention payments to brokers at the new joint venture being formed by Morgan Stanley andCitigroup Inc.’s Smith Barney unit.
$3 BILLION! The Congressional Dems and the Obama administration are holding the damn door to the treasury open for these raids! As I noted below the democrats pushed this debacle, signed it into law, defended it against years of warning flags and now are making sure the people who screwed us all are able to still live high on the hog. Now we see it is first class to the life boats first – sorry not enough for you common folks. Just give us your money and wealth before you sink below the waves.
Update: Ed Morrissey discovers that these bonus payments to Fannie and Freddie’s Failed Execs will be a regularly occurring event – bet the dems love that news. But it was their law the stipulated the plan!
This is really scary stuff. So Congress is now going to tax at 90% rate all company executives, by name, who receive bonuses, if they get TARP money. Congress can choose those in our country who earn money and single them out for a tax rate. Holy cow folks! Can they choose Bill Gates next and say we want your money? How is this any different then Venezuela. We want your farm, now it belongs to the government. We want your property to run our electric wires across, now we have it.
I guess you can do anything in the name of the collective. Run when you hear “for the good of the whole”.