Bailout Bonus Madness

(I first posted this HERE 04/04/2009)

Guess I’m just the news repeater these days. It’s just that you can’t make this stuff up.
 
Fannie, Freddie will pay $210 million in retention bonuses: "Mortgage finance giants Fannie Mae and Freddie Mac plan to pay more than $210 million in bonuses through next year to give workers the incentive to stay in their jobs at the government-controlled companies.

The retention awards for more than 7,600 employees were disclosed in a letter from the companies’ regulator released Friday by Sen. Charles Grassley of Iowa, the senior Republican on the Senate Finance Committee. The companies paid out nearly $51 million last year, are scheduled to make $146 million in payments this year and $13 million in 2010. "
(No hypocrisy there. – JH)

U.S. aims to help firms sidestep bailout rules: "

The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials."
(No hypocrisy there. These guys should run a hedge fund. – JH)

Financial industry paid millions to Obama aide : Summers earned cash last year from firms over which he now has influence:
"Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed Friday in releasing financial information about top officials. "

(No hypocrisy there. Well, no more than Hank Paulson et al. A guy has to earn a living doesn’t he? – JH)

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About JohnRH

Retired, avid winter skier, avid reader, traveler (avidly). :)
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