Fannie and Freddie Detail Retention Bonuses

[acmavm]

Source: New York Times

April 3, 2009, 11:11 am
Updated at 12:25 p.m.

Just a few weeks after retention bonuses at American International Group became a national scandal, Fannie Mae and Freddie Mac, the two mortgage-financing giants that the government rescued last fall, have outlined plans to pay an additional $159 million in bonuses to retain employees in 2009 and 2010, on top of the nearly $51 million already paid out last year.

James B. Lockhart of the Office of Federal Housing Enterprise Oversight, which now oversees the two companies, disclosed the bonus programs in a letter to Sen. Charles Grassley, the ranking member of the Senate Finance Committee.

In the letter, Mr. Lockhart defended the payouts as a way to “keep key staff without rewarding poor performance.” (Download the full letter below.)

Lawmakers have harshly criticized some bailed-out companies that later offered bonuses to workers, and the House passed legislation this week that would seek to limit compensation and bonuses at such firms.
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Read more: http://dealbook.blogs.nytimes.com/2009/04/03/fannie-and-freddie-detail-retention-bonuses/?partner=rss&emc=rss

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Damn. More bonuses.

These people should be glad the have a job.