Fannie and Freddie --- Now owned by Tax Payers

[Milton]

The two CEOs are being fired. I hope they do not get a golden parachute.

Big Severance Packages Await Fannie, Freddie CEOs : NPR

 

[Running_Man]

Takes a former baseball player to have some common sense. Jim Bunning comments that Paulson assured them in July they'd never need add capital to Fannie and Freddie the assurance they could would save the day.

First this shows how little control the top executives in the Treasury and Fed actually have in turning around the situation.


http://www.bloomberg.com/apps/news?pid=20601087&sid=alpUsTv3.upI&refer=home

 

[OAG]

OAG, a bit off topic, but when we discussed this on other threads, IIRC, you pointed out that one had a choice to take a deduction on Sched A for the repaid amount, or go back and figure out the past taxes paid on the SS income. Does this mean you plan to file amended returns for all those years?

Just to clear this up the choices are EITHER an Itemized Deduction (for the difference in benefits receive less the amount of the repayment paid) on Schedule A OR CREDIT (for ACTUAL TAXES paid on past benefits) on Line (70 or 71) I forgot which line. NO Amended returns. In my case I will take the Itemized deduction for the NET difference in SS received this year less the repayment as it results in the greater refund (which one you can take is optional and IRS recommends you figure it BOTH ways and then take the best one (for you)).

 

[FIRE'd@51]

Just to clear this up the choices are EITHER an Itemized Deduction (for the difference in benefits receive less the amount of the repayment paid) on Schedule A OR CREDIT (for ACTUAL TAXES paid on past benefits) on Line (70 or 71) I forgot which line. NO Amended returns. In my case I will take the Itemized deduction for the NET difference in SS received this year less the repayment as it results in the greater refund (which one you can take is optional and IRS recommends you figure it BOTH ways and then take the best one (for you)).

Thanks, OAG

 

[SecondCor521]

An article in the local paper today was pointing out the policy question that this brings up: What is the government's criteria for taking over such companies? It pointed out that the big auto companies and big airline companies are asking Congress for special loan packages.

Last night on Nightly Business Report they said that 30 year mortgages dropped about 40 basis points on the news.

2Cor521

 

[GLM]

FYI - son just signed contract to purchase first home . We are currently letting mortgage lenders compete for his business . (Excellent credit 20% down 30 yr fixed )

recent best quotes - Pt origination only

Wed 9/3 6%
Monday 9/8 5.625
Tuesday 9/9 5.5

looking for my crystal ball.....

 

[clifp]

I am shocked just shocked I tell you that Freddie and Fannie CEO are collecting huge severance packages for their mismanagement of their firms. While I agree with CFB that jail/civil law suit should be in their future. I'll bet other than a public furor and few politicians screaming come next year nothing will happen.

Here are my handy rules for understanding how everything works.
Rule 1. Banks have money
Rule 2. The folks overseeing the banks are former bankers
Rule 3. Bankers works for banks because of Rule 1
Hence
Rule 4. No matter who lose bankers always end up with money.

 

[chinaco]

Big Severance Packages Await Fannie, Freddie CEOs : NPR

Pay for performance in the wrong direction.

 

[ladelfina]

After thinking it over, I have to admit its a neat trick to peel off a hunk of government, make it a publicly investable entity, take in billions of investors money, have a bunch of executives strip millions of dollars out of it, get the government to take over whats left of the husk when the whole scheme crashes down and use taxpayer money to reinflate it, then give fat separation packages to the guys who did the deed.

CFB, you've described it perfectly. I wonder whether the larger point is that this was always on the horizon.. a "feature". It bears a lot of resemblance to private corporate raider scenarios, but w/o the taxpayer cash. Buy, strip assets and meaningful function, cash out, dump.

--
clifp, yeh that's why I've always had financials and keep hanging on to them. But it ain't working out exactly as I hoped..

--

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&refer=home

This is either really, really bad or nothing at all. I'm not sure which yet.

``This is a big deal,'' said Sarah Percy-Dove, head of credit research at Colonial First State Global Asset Management in Sydney. ``The market is not experienced at settling a credit event for a name of this size, so it is a bit of an unknown.''

Scientists dismiss such fears [of creating black holes] as nonsense. "At every stage of understanding the universe better, the benefits to civilisation have been immeasurable," he said.

"None of these big leaps were made with us knowing what was going to happen."

http://www.thisislondon.co.uk/stand...Countdown+to+man's+Big+Bang+begins/article.do

 

[Spanky]

Pay for performance in the wrong direction.

Should it be negative pay for negative performance and positive pay for positive performance?

 

[REWahoo]

Should it be negative pay for negative performance and positive pay for positive performance?

Sorry, the negative pay option isn't legal in the US. Have to pay minimum wage at least. I think that would be the perfect compensation package for negative performance.

 

[ladelfina]

Outrageous Severance Deals For Fannie/Freddie CEOs--Paid For By You

Taxpayers are now on the hook for tens of billions of dollars of capital necessary to save Fannie Mae (FNM) and Freddie Mac (FRE). The CEOs of both companies--the ones who ran them into the ground--have thankfully been shown the door. But they're taking a nice pot of money with them.

Specifically, 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--in part because of a clause he added to his employment contract two months ago, when it was clear the company was headed for disaster.

 

[cute fuzzy bunny]

I have a nice pair of sharp sticks for them.

 

[barbarus]

Our government is corrupt.

Put in plain words, America is run by crooks.

 

[Spanky]

Our government is corrupt.

Put in plain words, America is run by crooks.

The sad thing is that America is not alone.

 

[cute fuzzy bunny]

Dude, everyone works for money or power. Even the most charitable person should understand that charity is simply another form of power. If you find someone who doesnt seem motivated by money or power and is ardently seeking one or both of them, you simply havent figured out how they're doing it unnoticed yet.

Nobody anywhere is doing a public service or corporate job in order to "do the most good".

But its easy to hand the reins over to the slickest and most appealing people and let them do what they will. At least thats what it looks like we're all doing on a regular basis.

Dont you guys really want me over in the soapbox?

 

[barbarus]

Dude, everyone works for money or power. Even the most charitable person should understand that charity is simply another form of power. If you find someone who doesnt seem motivated by money or power and is ardently seeking one or both of them, you simply havent figured out how they're doing it unnoticed yet.

Nobody anywhere is doing a public service or corporate job in order to "do the most good".

But its easy to hand the reins over to the slickest and most appealing people and let them do what they will. At least thats what it looks like we're all doing on a regular basis.

Dont you guys really want me over in the soapbox?

You are right certainly, but few voters could ever be compelled to admit it.

Just wait until you here the general tone of the posts on this site by, say, next summer. Much of the apologism for the PTB will have given way to angry, frightened rants. While this will be bitterly pleasing to me, I would still much rather be posting about how great the economy is going.

I'd enjoy hearing a good long rant from you 'bunny. Hop up on your soap box and let go whenever you're in the mood.

 

[cute fuzzy bunny]

Oh it'll be going just fine by then, in fact, it'll be pretty darn good by years end.

I'm not much for long posts, but maybe someday I'll have myself an extra cup of coffee and let loose.