Who is ready for a second round of bonus outrage (dare I call it a "bonus" round)? This time it is Fannie Mae (NYSE: FNM) that has awarded retention bonuses to four of its top executives -- let's see how mad everyone gets about this one.The mortgage company told the SEC in a recent filing that it is going to award bonuses between $470,000 to $611,000 to four of its top executives. As is the nature of a bonus, this payment is on top of the executives' already-hefty base pay.
Remember, FNM was taken over by federal regulators last fall and has asked for $15.2 billion in government aid. There was another company seized by federal regulators as well, Freddie Mac (NYSE: FRE), which received $13.8 billion. Of course, FRE has asked for an extra $31 billion, perhaps to pay the bonuses that it plans to pay -- no amounts have been disclosed yet.
That's right, two more companies that received a federal bailout are going to award bonuses to their higher ups. Speaking of bonuses, it appears that American International Group (NYSE: AIG) has seen some of its employees return their bonuses, according to CEO Edward Liddy. The embattled CEO told a House Financial Services subcommittee that he "asked those who have received retention payments in excess of $100,000 or more to return at least half of those payments. Some have already stepped up and returned," some up to 100%.
And if this wasn't enough news for you in "bonusgate," Democratic Senator Chris Dodd admitted to CNN that he added the language that allowed federal stimulus money to go for bonuses. Dodd told CNN that the administration "pushed for the language." This revelation was in direct contrast to Dodd's denial of such a move on Tuesday. A Treasury Department official corroborated the statement, saying that "administration officials were afraid the government would face numerous lawsuits without the new language."
What's a bit of public opinion compared to lawsuits ... It appears that a lot was paid to save face.
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Reader Comments (Page 1 of 1)
3-19-2009 @ 9:57AM
pollywade said...
I already emailed,the president,bernanke,geithner,fannie mae and freddie mac,fox news and barney frank on this.I say lets ask why,they cant pay their stockholders dividends,when they can pay their executives bonuses!
Anyone who reads this,please email the above people,maybe we will see outrage,I for one,as a stockholder of fannie mae and freddiemac pfd,am outraged!!I also say,get rid of both giethner and bernanke they are old Bush blood,and we need a change!
3-21-2009 @ 4:42PM
betty long said...
Re: Bonuses being paid to the AIG moguls that are supposed to be so brilliant.If they are, why are we giving them all this money? What about the average stockholder that has lost a fortune on investments, and probably not have the time to recoup our losses. Who is going to repay us for our 401K that have been converted to IRA's.Now you are expecting us to pay their bonusesand tax our children and grand children. I believe thepublic is damn sick and tired of this. If thes people have to suck it up as we have had to do, so be it. A very disgruntled follower and I know a vast number that agree w/me.
4-07-2009 @ 3:14AM
Ryan said...
Fannie Mae suffered a huge loss of nearly $29billion in Q3 and they are expecting a loan $15.2billion from federal government.Fannie Mae Share Price is very low.