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A Bonus For Hypocrisy

- November 1, 2011

Obama Flip Flops On Fannie And Freddie Executives Receiving Millions In “Performance” Bonuses

Obama’s Efforts To Fix “The Housing Crisis May Have Fallen Short … But They Have Led To Seven-Figure Paydays For Some Top Executives At Troubled Mortgage Giants Fannie Mae And Freddie Mac.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

Watch Obama Attack Fannie And Freddie Bonuses In 2008 

IN 2008, OBAMA WAS OUTRAGED BY MULTIMILLION DOLLAR BONUSES AT FANNIE AND FREDDIE BUT UNDER HIS WATCH HE REMAINS SILENT ABOUT THEM

THEN: In 2008, Obama Was Troubled By Fannie And Freddie Handing Out “Multimillion-Dollar Severance Packages” To Top Executives. OBAMA: “I've always said that any action with respect to Fannie Mae and Freddie Mac needs to put taxpayers first and can't under any circumstances bail out shareholders or senior management of that company -- those companies. As a consequence, I'm troubled by the news reports that the outgoing CEOs of Fannie and Freddie may be in line to receive multimillion-dollar severance packages as part of the Treasury plan.” (Senator Barack Obama, Press Conference, Riverside, OH, 9/9/08)

  • Obama Wrote That “Under No Circumstances Should The Executives Of These Institutions Earn A Windfall” As They Are Being Bailed Out With Taxpayer Resources. OBAMA: “Under no circumstances should the executives of these institutions earn a windfall at a time when the U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources.” (Senator Barack Obama, Letter To Treasury Secretary Henry Paulson And FHFA Director Henry Lockhart, 9/9/08) 

NOW: “[T]he White House So Far Has Remained Largely Silent About Comparable Bonuses At Fannie Mae And Freddie Mac.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

Fannie And Freddie Executives Are Awarding Over $12 Million In Bonuses To Ten Executives For Meeting “Modest Performance Targets.” “The Federal Housing Finance Agency, the government regulator for Fannie and Freddie, approved $12.79 million in bonus pay after 10 executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

The Bonuses Come After Fannie And Freddie Have Received Nearly $170 Billion In Taxpayer Aid. “The executives got the bonuses about two years after the federally backed mortgage giants received nearly $170 billion in taxpayer bailouts — and despite pledges by FHFA, the office tasked with keeping them solvent, that it would adjust the level of CEO-level pay after critics slammed huge compensation packages paid out to former Fannie Mae CEO Franklin Raines and others.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

  • Freddie Mac CEO Ed Haldeman Received A $2.3 Million Bonus On Top Of His $900,000 Salary. “Securities and Exchange Commission documents show that Ed Haldeman, who announced last week that he is stepping down as Freddie Mac’s CEO, received a base salary of $900,000 last year yet took home an additional $2.3 million in bonus pay.”  (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

Rep. Elijah Cummings (D-MD): “It Is Outrageous …” “‘It is outrageous that senior executives at Fannie and Freddie are receiving multimillion-dollar compensation packages when they now rely on funding from U.S. taxpayers, many of whom face foreclosure or whose homes are underwater,’ Rep. Elijah Cummings of Maryland … wrote in an email.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

THE TRUTH IS OBAMA HAS NO PROBLEM TOLERATING THE FAILURES OF 
FANNIE AND FREDDIE EXECUTIVES

“Most Analysts Believe The Financial Implosion Of 2008 Was Fueled In Part By Fannie Mae And Freddie Mac’s Zeal In Promoting Homeownership And Their Backing Of Risky Loans.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11) 

  • Freddie Mac Has Only “Helped A Mere 160,000 Homeowners” Modify Their Mortgages Through Obama’s HAMP Program. “For example, Freddie Mac helped a mere 160,000 homeowners change their mortgages ‘in support’ of the president’s Home Affordable Modification Program and contacted only 45 percent of eligible borrowers, according to SEC filings. The company itself has modified 134,282 of its own loans since the start of the program.” (Josh Boak and Joseph Williams, “Fannie Mae, Freddie Mac Executives Get Big Housing Bonuses,” Politico, 10/31/11)

"Obama's Tolerance For Fannie Mae Veterans Has Always Been Murky." "The Obama team's tolerance for Fannie Mae veterans has always been murky. During the 2008 campaign, Obama picked former Fannie Mae CEO Jim Johnson to lead his vice presidential search but dumped Johnson after his ties to the worsening mortgage crisis made him radioactive." (Josh Gerstein and Abby Phillip, "Donilon's Resume: Policy, Law And Fannie Mae,” Politico10/8/10) 

  • Obama's Chief Of Staff William Daley Served On The Fannie Mae Board And Received Hundreds Of Thousands Of Dollars In Deferred Compensation And Stock Options. "After Clinton passed over Daley for a Cabinet post in his first term, he appointed him to the Fannie Mae board. Daley reported collecting $24,814 in director's fees in 1996 from the firm. He also listed deferred compensation and stock options from Fannie Mae worth between $215,000 and $500,000." (Charles R. Babcock and Barbara J. Saffir, "In Wealth, Clinton Team Doesn't Look Like America," The Washington Post, 6/24/97)
  • Obama’s National Security Advisor Tom Donilon Was Fannie Mae Chief Lobbyist At A Time When The Mortgage Giant Was Fighting Off Stricter Oversight. "A longtime Democratic operative, Donilon for six years beginning in 1999 was a registered lobbyist and top executive at Fannie Mae, leaving in 2005. His tenure coincided with efforts in Congress to rein in the mortgage giant with tougher regulations and greater oversight.” (Pete Yost, "On Housing, Donilon At Center Of Regulatory Fight," The Associated Press, 10/9/10)

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