Posted on 09/15/2008 1:24:07 AM PDT by HAL9000
Excerpt -
The regulator of Fannie Mae and Freddie Mac said Sunday that it won't allow the companies to make "golden parachute" severance payments to the mortgage companies' ousted chief executive officers.In a statement, the Federal Housing Finance Agency said such payments wouldn't be made to Daniel Mudd and Richard Syron, despite provisions in their contracts. Mr. Mudd served as chief executive of Fannie and Mr. Syron was chairman and CEO of Freddie until last weekend, when the regulator seized control of the companies, saying they were in danger of running out of capital.
~ snip ~
(Excerpt) Read more at online.wsj.com ...
I smell a lawsuit in the making that will cost the taxpayers of this country more then the severance packages these two have in their contracts.
That does not mean we should give in. If the Government can show true malfeasance of office, the Ceo of Freddie and Fannie defaulted on the responsibilities of their contract while demanding all the perks in it.
If these two are given their full severance packages, it sets a horrible precedence, and one the US taxpayer should not have to ensure as many other financial institutions are bailed out by us.
Bankruptcy courts void contracts all the time.
This is not just mismanagement;this is both malfeasance and misfeasance! They cooked the books, people!
Jaimie Gorelick is in the middle of every modern government failure. It is time for this woman to go to jail.
They better go further than that. Let’s get back those big bonuses to idiots like Gorelick who looted the place while sending it down the skids to its present state. If ever there needs to be a Congressional Investigation, this is the case.
I also had criticized the huge bonuses that CEOs and executives were making at these big corporation, and was labeled a Marxist in return by many here in FR.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.