So everyone should know by now that I have a problem with Fannie Mae and Freddie Mac. (Here is a great article with footnotes from 2003) These two companies started out as GSE’s, meaning they received preferential treatment from the Government. During this time they “made” BILLIONS of dollars that were distributed to shareholders and EMPLOYEES. Then they ran into trouble (because they were IDIOTS and did not understand the RISKS they were taking, or they were THIEVES because they knew the risks and did not CARE and STOLE the money from the company) and were BAILED out by the Government with OUR MONEY.
The following is the problem that I am having:
Here is an article from February 2011 from CNN:
“When the dust settles, the federal bailout of Fannie Mae and Freddie Mac will be the most expensive government rescue of the financial crisis — it already stands at $153 billion and counting.” (my emphasis)
And here is an article from the Huffington Post on October 28, 2011:
“The government has already spent $169 billion to bail out the two companies.” (my emphasis)
So, in less than 8 months, WE have given these two companies ANOTHER $16 BILLION!!! This does NOT include the latest quarter. HEre is the problem I am having. IF we, THE AMERICAN TAXPAYER, did NOT give any money to these two companies they would have to file for bankruptcy. Yet the management is STILL receiving bonuses!!
Here is an article from FoxNews:
“A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government-seized mortgage giants…”
The people who “work” for these companies are LUCKY to have a job!!! If We did not bail them out the companies would likely have been sold off. WE own these companies!!! I want to know WHO approved these “bonuses”!!! President Obama is DIRECTLY responsible for these companies!!! HE bought them for US!! Whomever “approved” these bonuses needs to hear two words……..”You’re FIRED”!!! Also, President Obama needs to answer questions as to why this was allowed to get this far. What is President Obama going to do about the money that was “paid” to prior management of Fannie and Freddie?? I am especially interested in ANY monies paid as bonuses!!
What say you Mr. “President”???
I will leave you with a few more quotes from the above referenced articles:
“The Federal Housing Finance Agency, the government body that oversees the two mortgage giants, has estimated that losses through 2013 will require Treasury to pour another $68 billion to $210 billion into the firms on top of the money already used to prop-up the firms and the housing market.”
“But while the government has kept the firms alive by pumping money into them since then, there has been no plan on reforming their operations going forward.”
“It will cost taxpayers at least $51 billion more to support the mortgage companies through 2014, and as much as $142 billion in the most extreme case.”
In case you missed it…………THEY ARE STILL LOSING MONEY!!!