U.S. Representative Frank A. LoBiondo (NJ-02) today lambasted the nearly $13 million in taxpayer-funded bonuses handed out to ten (10) executives at the government-sponsored corporations of Fannie Mae and Freddie Mac. The two mortgage giants, who approved risky mortgage loans for unqualified applicants which contributed to the 2008 financial collapse, have thus far received more than $140 billion dollars in taxpayer bailouts.
"After significantly contributing to the economic collapse our country is still struggling to emerge from, it is absolutely unacceptable that millions in taxpayer dollars are going to bonuses to executives at Fannie & Freddie," blasted LoBiondo. "Just this morning I met with small business leaders at the Vineland Chamber of Commerce who detailed to me the challenges they face to pay their employees and keep their doors open. These bonus payments are an outright insult to them and all Americans. Like those on Wall Street who have yet to be brought to justice, the Obama Administration must not allow additional taxpayer dollars to be used to reward Fannie & Freddie."
Per a news report in POLITICO today:
"Securities and Exchange Commission documents show that Ed Haldeman, who announced last week that he is stepping down as Freddie Mac's CEO, received a base salary of $900,000 last year yet took home an additional $2.3 million in bonus pay. Records show other Fannie and Freddie executives got similar Wall Street-style compensation packages; Fannie Mae CEO Michael Williams, for example, got $2.37 million in performance bonuses.
"Including Haldeman, the top five officers at Freddie banked a combined $6.46 million in performance pay alone last year, though a second bonus installment for 2010 has yet to be reported to the SEC, according to agency records. Williams and others at Fannie pocketed $6.33 million in incentives for what SEC records describe as meeting the primary goal of providing "liquidity, stability and affordability" to the national market."
The full article is available at www.politico.com/news/stories/1011/67292.html.