Thread: Fannie & Freddie CEO's limited to 500K

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  1. #1 Fannie & Freddie CEO's limited to 500K 
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    It is a cryin' shame that it had to come down to regulation. But it did, and now there will be two less pigs feeding at the government trough. Old CEO's made 3 to 6 million (What in God's name makes someone worth 500,000/month to a government sponsored entity?!) and the new ones will be paid properly.
    Fannie, Freddie CEO pay capped at $500,000 with no bonuses

    WASHINGTON -- The regulator for government-seized mortgage giants Fannie Mae and Freddie Mac on Friday set a target cap of $500,000 in pay for incoming chief executives at the two firms as it seeks to reduce executive pay by almost 75 percent.

    Both Fannie and Freddie are seeking new chief executives after their CEOs announced plans to step down in recent months.

    According to a release from the Federal Housing Finance Agency, the regulator for Fannie and Freddie, the 2011 pay package of Michael Williams, the outgoing CEO of Fannie Mae, was $5.3 million including a $900,000 base salary.

    Freddie Mac chief executive Charles Haldeman Jr. announced in October that he would step down in 2012. He had a 2011 pay package of $3.8 million, also including a $900,000 base salary.

    The regulator said the 2012 pay program eliminates bonuses. Republicans in Congress have been pressing for cuts to pay and elimination of bonuses for executives at Fannie and Freddie.

    Read more: http://www.nypost.com/p/news/busines...#ixzz1oe4pqHJ0
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  2. #2  
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    $500k is more than the President makes, and there's no shortage of applicants for THAT job. :)
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  3. #3  
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    Yeah, 500K is enough. I'd like to see Fannie and Freddie promote from within. Get someone who has grown to understand the system, knows all the rules, gives proper accountability, and will eventually retire when he/she is old enough. ENOUGH of this "searching for the very best.....". That's just nonsense and a good way to waste money.

    Fannie and Freddie each employ about 5,000 people. There is someone in each of the organizations who can do the job. Promote them.
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  4. #4  
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    I'll take the job for half that. My first task is to create a task force to privatize 100% and fire 100%, including myself! Why is the gubmint in the mortgage bidness anyway? They can't handle creating a budget in over a thousand days yet believe they can handle an entire industry.
    Education without values, as useful as it is, seems rather to make man a more clever devil.
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    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
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  5. #5  
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    Quote Originally Posted by AmPat View Post
    I'll take the job for half that. My first task is to create a task force to privatize 100% and fire 100%, including myself! Why is the gubmint in the mortgage bidness anyway? They can't handle creating a budget in over a thousand days yet believe they can handle an entire industry.
    There is actually an answer to that. Fannie and Freddie are the origin of the 30 and 15 year mortgages, which are almost nonexistent in other countries. Banks could never loan money for that time period.

    And think how important owning a home is to the economy. You're probably a home owner; just think of all the things you buy because you own a home. Lawn care; kids yard toys; nicer furniture; refinished kitchen or bath; paint; and then compare that to how you behave when you rent. There is a big difference.

    This economy will not thrive without home ownership.
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  6. #6  
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    Quote Originally Posted by Starbuck View Post
    There is actually an answer to that. Fannie and Freddie are the origin of the 30 and 15 year mortgages, which are almost nonexistent in other countries. Banks could never loan money for that time period.

    And think how important owning a home is to the economy. You're probably a home owner; just think of all the things you buy because you own a home. Lawn care; kids yard toys; nicer furniture; refinished kitchen or bath; paint; and then compare that to how you behave when you rent. There is a big difference.

    This economy will not thrive without home ownership.
    Understood and valid, to a point.

    The problem is the push to put ALL Americans into homes whether they could afford them or not. Home ownership is not a right and not all should or can own. The market was skewed into massive ownership without the means to pay for those homes. Now we have a government created mess and glut of homes leading to a broken economy that can be directly traced to the housing collapse. Home ownership under those conditions has not led to a boom in "Lawn care; kids yard toys; nicer furniture; refinished kitchen or bath; paint;" It has led to a near depression and the longest recession in the history of the US.
    Education without values, as useful as it is, seems rather to make man a more clever devil.
    C. S. Lewis
    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
    Ayn Rand
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