Posted on 09/20/2008 11:47:17 PM PDT by STARWISE
U.S. regulators will not allow mortgage giants Fannie Mae and Freddie Mac to pay their departing chief executives multimillion-dollar severance packages outlined in their contracts, The Washington Post reported on Sunday.
*snip*
Mudd and Syron were entitled to combined pay and bonus packages worth about $24 million as part of the government's plan to restructure the troubled companies, which own or guarantee about half of the $11 trillion outstanding home mortgages in the United States.
(Excerpt) Read more at reuters.com ...
The first time in forty years that an exit bonus for a CEO was denied? Am I correct? I can’t think of a single case where the bonus was denied before. Tell me I’m wrong.
GOOD!!!
I wish I knew .. but I don’t.
At least he won’t get $26M like
Jamie Gorelick got. I want her
and Franklin Raines in orange
jumpsuits .. bad!
~~PING!
I see lawyers + a turnaround by Congress...
And probably unless charges are brought against them for some legality against F & F will probably not be valid in court.
The criminals will get the money. That is how the system works.
Praying for legal action.
The government decides to nationalize the bad debt of the entire banking industry, and I’m supposed to be glad that they’re denying these idiots their $24 M parachutes? Whoopie.
Yeah, “Enron” these guys!
Great, but when do they go to prison?!
However, the two businesses in question were left bankrupt by the two CEO’s. I’d say that should constitute “firing for cause”, in which case they should not get their exit bonus according to the contract.
Good.
Their questionable mortgage portfolios.
Couldn’t be soon enough for me.
~~~`
Investors sue ex-Fannie Mae execs
Four former senior executives at Fannie Mae have been sued by investors in the troubled mortgage firm.
The investors claim Stephen Ashley, Daniel Mudd, Robert Levin and Steven Swad lied about the firm’s finances, artificially inflating its share price.
The move came after the US government took over the firm, ousting Mr Ashley, Mr Mudd and Mr Levin from their jobs.
Fellow lender Freddie Mac was also bailed out in a move that could cost the US taxpayer $200bn (£113bn).
The class action says the four had been “motivated to misrepresent Fannie Mae’s financial condition by their generous compensation packages”.
http://news.bbc.co.uk/2/hi/business/7605972.stm
Velly intellesting.
Thank you .. professional incest in the Beltway goes on.
Have you heard him report on Fannie Mae and give this
disclosure?
You forgot about all the lawyers and other members of the court (Judges etc.).
It would be worthwhile to look for vid of Gregory’s reporting on this point.
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