A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government-seized mortgage giants Fannie Mae and Freddie Mac that received a $170 billion taxpayer-funded bailout.
“I am calling on the president of the United States to cancel those bonuses and explain to the American people, the taxpayers who bailed out Freddie and Fannie, why he continues to reward failure,” Sen. John Barrasso, R-Wyo., said at a news conference Tuesday.
The two housing giants have received about $141 billion in taxpayer funds since the government took them over in 2008 during the financial crisis.
Politico first reported the $6.46 million in bonuses for the top five officers at Freddie Mac — including $2.3 million for CEO Charles E. Haldeman Jr., who is stepping down next year — and $6.33 million for Fannie Mae officials, including $2.37 million for CEO Michael Williams, for meeting modest goals.
A second bonus installment for Freddie executives in 2010 has yet to be reported to the Securities and Exchange Commission, Politico reported.
White House aides say the president took a lead on cleaning up excessive compensation on Wall Street with the Dodd-Frank bill, but those provisions do not apply to Fannie and Freddie.
“The White House was not involved and nor should it be,” White House Press Secretary Jay Carney said Tuesday.
But during the 2008 presidential campaign, Obama had a slightly more aggressive view.
“I’ve always said that any action with respect to Fannie Mae and Freddie Mac needs to put taxpayers first and can’t under any circumstances bail out shareholders or senior management of that company,” Obama said.
Freddie Mac defended the bonuses.
“Freddie Mac has done a considerable amount on behalf of the American taxpayers to support the housing finance market since entering into conservatorship,” Freddie spokesman Michael Cosgrove told Politico. “We’re providing mortgage funding and continuous liquidity to the market. Together with Fannie Mae, we’ve funded the large majority of the nation’s residential loans. We’re insisting on responsible lending.”
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4 Responses
Like all hypocritical views of the current administration, “We are behind OWS (Occupy wall street) all the way until it affects our cronies”
“The White House was not involved and nor should it be,” White House Press Secretary Jay Carney said Tuesday.” yet when it came to banks charging a 5 dollar fee on Debit Card use for accounts that were otherwise not profitable to them the white house found a way to get involved. Never has there been a more verbal socialist/anti capitalistic government in the history of the US. Up until of course it suits them.
The countdown to the retaking of America continues.
USA, not USSA.
but without the bonuses, how will they make campaign contributions??????
Funny that I dont hear any of the Occupy Wall Street nuts complaining about this. Wait- is it possible they have a radical left wing agenda and accusing Obama of any wrongdoing is a no no??
Banks should not get bonuses and neither should wall street but Fannie should? This is a non starter; No bonuses whatsoever