Fannie Mae & Freddie Mac CEOs paid millions for getting fired

http://www.businesssheet.com/2008/9/outrageous-severance-deals-for-ceos-who-blew-up-fannie-and-freddie ^ | September 7, 2008 | Henry Blodget

[too_cool_for_skool]

" .. Dan Mudd, the CEO of Fannie Mae, is getting $9.3 million of severance for destroying his company. Richard Syron, the CEO of Freddie Mac, is getting $14.1 million .."

"But the severance money comes right out of the pockets of taxpayers, who didn't agree to the severance deals and aren't ponying up to save the companies because they want to. Taxpayers are saving Fannie and Freddie because they have to--because Mudd and Syron were incompetent.

'Incompetent'? Is that too harsh? Absolutely not. Both men gambled big and lost bigger. The fact that they may not have appreciated how big a risk they were taking is no defense: If they didn't, they should have."

[too_cool_for_skool]

Every single American taxpayer just got robbed. Where the hell is the outrage?

[refermech]

The republicans had better do something about this. The bail out should not be for these lousy managers.

[conservativehusker]

Weren’t these guys mostly democrats?? If so thats why there is no outrage in the media....I heard somewhere that Jamie Gorlick was even involved...

[LetsRok]

The CEO’s have contracts to be paid regardless of what happens to the companies. Why would any CEO take the risk and join a losing company unless they were guaranteed some sort of protection if it didn’t work out?

[mkjessup]

Many moons ago in another lifetime, I worked at Fannie Mae in their IT department and I’m here to tell you that NO expense was spared when it came to luxuries, perks and gadgets, any drunken sailor with a wad of cash would have looked like a sober Baptist on Sunday morning compared to those wasteful hogs at FNMA, believe that.

As for the sweetheart severance deals?

That sh*t don’t float, those CEOs need to be told “not one dime” of reward for their mismanagement and malfeasance, and the IRS should be auditing their asses for the next 10 years to see how much loot they managed to abscond with during their tenures at their respective giant piggy banks.

[xcamel]

It was the dems social engineering playground with an unlimited bankroll. The minute Andrew Cuomo threatened to sue all the member banks for ‘redlining’. (around 1990) - Schumer, Dodd, Gorelick, Raines, the list of liberal (clintonian) cronies goes on and on... The Dems protected them, and prevented any serious inquiries, deflected auditors, and passed laws in the dead of night to keep the pyramid scheme going.

[Nervous Tick]

They should be skinned alive — like the varmints they are.

Along with Bernanke and Paulsen.

As well, I wonder how many incompetent affirmative action hires you’d find in that open sewer of a bureaucracy. Their jobs aren’t even at risk!

[Jacquerie]

Outrage?

Few politicians did not receive campaign donations, though the bulk went to rats and their favorite programs like Obammy’s ACORN.

Enron wasn't half the scandal of Fannie/Freddie, but I'm not holding my breathe for Fan/Fred Congressional hearings. Our Congress critters just screwed us all and no one will be held accountable.

[xcamel]

Did I mention $25 - $50 million to “community organizers” like ACORN to rat out lenders that had real loan requirements — Like INCOME??

[dfwgator]

It’s easy to be drunk with money when you have FedGov as a designated driver.

[badgerfan1976]

Andy Gause hit it right on the head in this interview I heard today

http://feeds.radioamerica.org/rd-bin/rdfeed.mp3?GKE&cast_id=3890

[lucky american]

Not only robbed, but the government now owns millions of houses. This cannot be a good thing. Government cannot run a business like a business with an unlimited amount of {taxpayer}money at their disposal.

[outofsalt]

Google the names of prior CEO’s of Fannie and Freddie and check their political contributions. A few worked both sides of the aisle but the bulk of their donations were for the Dems. Of course several are now wrking for Obama.
This is worse than Enron but nobody will report it.

Leland Brendsel, Franklin Rains, Rham Emanuel, Jim Johnson, I’m sure there are many others.
http://www.spectator.org/dsp_article.asp?art_id=13841

[Beatthedrum]

This is insane. It's bad enough when publicly owned companies cough up big money for useless CEO’s, just to get rid of them - if the shareholder's don't stop it, so be it..

But these pricks were working for a quasi-governmental organization. These are govt employees and should be sent packing with a basic severance package, maybe 1 MM tops, or 1 years salary, which ever is less.

This is pathetic...

[Voltage]

I would be interested to know who created these two organizations. Unfortunately I would guess that both partys thought it was a great idea!

[TASMANIANRED]

Need to prosecute them.

[IrishCatholic]

The press is burying the story. The main years of the destruction happened under Raines and Gorelick.
If it was covered honestly the Dems would lose both the White House and Congress.

[litehaus]

"This is worse than Enron but nobody will report it."

.

Glen Beck did Today.....

[outofsalt]

“I would be interested to know who created these two organizations.”

http://hnn.us/articles/1849.html

Fannie Mae was part of FDR’s new deal response to the great depression. (see tag line)

[DManA]

They will end up in jail and their severance packages can pay their fines.