GT500-07 Posted April 3, 2009 Report Share Posted April 3, 2009 wt?, having a job, paycheck and benefits in todays economy is enough incentive to stay. 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 bonuses 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. "It's hard to see any common sense in management decisions that award hundreds of millions in bonuses when their organizations lost more than $100 billion in a year," Grassley said in a statement. "It's an insult that the bonuses were made with an infusion of cash from taxpayers." http://finance.yahoo.com/news/Fannie-Fredd...f-14844742.html Link to comment Share on other sites More sharing options...
Boss Doctor Posted April 3, 2009 Report Share Posted April 3, 2009 Does this really surprise anyone? Link to comment Share on other sites More sharing options...
Guest markham51 Posted April 3, 2009 Report Share Posted April 3, 2009 Sounds like a rip-off to me. I rarely have a problem with paying well defined performance bonuses, but seldom think retention bonuses are warranted. Sounds like blackmail to me!!!!! I look forward to more details. I can understand how some key people might be able to find a good job but..... 165 million worth of bonuses sounds absolutely crazy!!!!!!!! I say let them all quit and close the whole damn thing down. The banks need the business anyway. As an aside, in Canada we have a system where if you can't make a substantial minimum down payment on a house (20pct) you have to buy a small insurance policy through the Canada Mortgage and Housing Corp (gov't owned). We dont have a F Mae or Mac. You submit an application to CMHC at the same time you go for your bank mortgage and they have to approve you as well. This means at least 2 unconnected eyes are looking at your ability to make the payments. The "insurance premium" you pay CMHC creates a reserve in case of bankruptcy.... from which the bank can then draw if the bank has to reposess. If the US would have a similar system of insurance where a reserve against bad mortgages was created it might buffer this type of thing in the future. It all comes down to responsible home ownership...just like it used to be. Everyone thought US banks were too big to fail. No amount of risk was too high if you could pocket the kind of money these guys were paying themselves! 400 trillion dollars in derivatives outstanding when things fell (10 times the GDP of the WORLD for a year). Its no wonder the only part of the US economy that was truly expanding was the financial services sector. Everybody was in it, insurance companies, Wall Street brokerage firms. It was the proverbial ability to print money! Link to comment Share on other sites More sharing options...
RUFDRAFT Posted April 4, 2009 Report Share Posted April 4, 2009 It's hard for people like me (worrying about making next month's mortgage payment) to understand all these huge payments to people who don't deserve them. I used to wonder why some people snap and do crazy things. Link to comment Share on other sites More sharing options...
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