Bankrupt Fannie & Freddie Executive Pay Boondoggle

The New York Times is reporting that the top six executives at Fannie Mae and Freddie Mac received $35.4 million over the last two years (2009 & 2010).

Since Fannie Mae and Freddie Mac were taken over in September 2008, the companies’ mounting mortgage losses have required a $153 billion infusion from taxpayers. Total losses may reach $363 billion through 2013, according to government estimates.

Obama's regulators approved the generous executive compensation with little scrutiny or analysis, according to a report published by the inspector general of the Federal Housing Finance Agency

Fannie and Freddie were not required to submit to the strict executive compensation process setup for TARP banks and AIG because their bailouts have not come from TARP.

All especially ironic given the role Fannie Mae and Freddie Mac played in the lead-up to the 2007 Sub-prime Housing Bubble and Econ Crash.  The Clinton administration is squarely responsible for seeding the housing bubble when underwriting rules at Fannie Mae were lowered. Andrew Cuomo as HUD secretary was cheerleader for sub-prime, high risk loans to those without incomes, credit, or job history (NINJA lending).

Both GSEs have received multi-billions in bailouts over the past 20 years, due in part to incompetent management, and lately due to the trillions in bad loans underwritten and repurchased for resale as MBS (Mortgaged Backed Securities).  The Bush team tried to avert the disaster in 2005 with Fannie Reform, but Sen. Chris Dodd killed the vote in the senate banking committee, after the bill passed the house.

The GOP is correctly making attempts to foreclose on Fannie and Freddie, and put them both on the street where they belong.