The guys who aided and abetted the 2008 mortgage crisis are getting an early Christmas present — paid for by US — courtesy of Charlotte’s favorite big-spending, race-agitating former congressman:
[…] The chief executives of government-controlled mortgage-finance firms Fannie Mae andFreddie Mac will get multimillion-dollar paydays thanks to a big raise approved by the companies’ regulator over the objections of lawmakers and the White House.
In separate filings with the Securities and Exchange Commission on Wednesday, Fannie Mae and Freddie Mac disclosed that their respective CEOs, Timothy J. Mayopoulos and Donald Layton, would have a total annual target compensation of $4 million each, effective Wednesday.
The salaries of Messrs. Mayopoulos and Layton had been capped at $600,000 for the past two years. […]
Gadzooks! From $600K to $4 million per year! WHO could be responsible for something like this? (And, um, where do we apply for a job with said individual?)
As food for thought, here is the driveby media expressing outrage over the CEO of Duke Power — a completely private company — getting her pay raised from $500K annually to $1.2 million.
[…] Messrs. Mayopoulos and Layton and the companies’ boards declined to comment through representatives. In May, the chairmen of the companies’ boards said higher compensation was necessary for retention and succession planning issues.
But in granting the pay increase, Federal Housing Finance Agency Director Mel Watt defied the White House and some lawmakers who said the raises weren’t appropriate for companies still backstopped by taxpayers.[…]
Seriously? Are we really expected to believe that ol’ Mel and Big Barry argued about this, and ol’ Mel just did it anyway? Seriously?
The U.S. Treasury Department “does not support FHFA’s new approach to CEO compensation at Fannie Mae and Freddie Mac and urged the agency to reject any increase,” said a Treasury Department spokesman. “While FHFA ultimately has sole authority over executive compensation at both enterprises, Treasury has consistently recommended that existing limits on compensation continue given the taxpayers ongoing backstop of both enterprises.”
In a statement, Mr. Watt said that the new pay packages are “consistent with FHFA’s statutory responsibilities to ensure safety and soundness and a liquid national housing finance market.” He added that the structure of the identical pay packages, which include deferred salary of $3.25 million, would “promote CEO retention, allow reliable succession planning and ensure the continuity, efficiency and stability of Enterprise operations.”
Fannie and Freddie were taken over by the government in 2008, eventually receiving $187.5 billion in bailout money. In the past few years, they have become highly profitable, sending the U.S. Treasury more than $230 billion. Rebuffing calls to release the companies, White House officials have said Fannie’s and Freddie’s future should be determined by Congress.[…]
Good point. Why isn’t the GOP-controlled Congress clamoring to get this albatross off of the government dole?
Apparently Watt and the rest of the crew in DC learned nothing from the 2008 crisis. Here’s ol’ Mel trying to reintroduce the very same rules — giving mortgages to anybody with a pulse, basically — that led to the 2008 mess.