Fannie Mae, Freddie Mac Fat Cats Slimmed

Executives at Fannie and Freddie made millions of dollars as they drove those institutions into bankruptcy and a massive taxpayer bailout.

Taxpayers are on the hook for about $300 billion by 2014 to keep Fannie and Freddie afloat.

Now the folks who run Fannie and Freddie after the horse bolted the barn are having their pay limited.

The Washington Post reports:

The government says it will cap pay for Fannie Mae and Freddie Mac chief executives at $500,000 per year and eliminate annual bonuses for all employees. The changes come after Congress pressured the government to stop big payouts at the bailed-out mortgage giants.

The Federal Housing Finance Agency, the government agency that oversees Fannie and Freddie, also said Friday that it would cut pay for roughly 50 other executives at the two companies. Those employees are still eligible to earn salaries above the cap.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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