Obama warns on Fannie, Freddie golden parachutes

[Coexist]

http://www.reuters.com/article/bondsNews/idUSWBT00966920080909

WASHINGTON (Reuters) - Democratic presidential candidate Barack Obama warned U.S. regulators on Tuesday it would be "a gross violation of the public trust" if they did not use their power to block excessive severance payments to executives leaving Fannie Mae or Freddie Mac.

In a letter to Treasury Secretary Henry Paulson, Illinois Sen. Obama cited news reports that the CEOs of Fannie and Freddie could get millions of dollars in severance pay. He said "under no circumstances" should such payments be allowed.

....

"I urge you immediately to clarify that the agreement with Fannie Mae and Freddie Mac voids any such inappropriate windfall payments," said the letter obtained by Reuters.

Obama said that when Congress gave regulators the power to step in and rescue the companies, it also granted the power to block any severance payments to CEOs.

"It would be a gross violation of the public trust to fail to use this authority now," Obama wrote in the letter.


Digg it!

[DaveJ]

1. What a shock

I mean, a shock to U.S. business to convey the message that one can't fail, and then receive a check equal to more than most people make in a lifetime. Really, no sarcasm here, what a shock to our system.

[liberalmuse]

2. My 'pub co-worker came up to me this morning...

saying, 'You were right! They really did bail out Fannie and Freddy. I'm pissed.' I was thinking, 'Where have you been, woman?' I had mentioned this quite a few weeks back, and I guess she didn't believe me. Anyway, I asked her what kind of golden parachute she thought the CEO's would be getting. She's not happy. She bought a McMansion and her hubby's job is starting to lay off workers, which would devastate them and their ability to pay the mortgage. I hope to convert her into voting Dem by November.

[monktonman]

3. Had the same conversation with a puke coworker last night.

I said something like "so much for small government ay?" he was dead silent.
I went on to compare the u.s. with the soviet union
and finished with how universal health care would be a giant government program
but nationalizing the mortgage industry isnt...right?

[Coexist]

5. Deregulation totally rocks! The market takes care of everything!

not.

[DaveJ]

6. She's an idiot, but I say that affectionately.

Everyone makes mistakes, and who knows, they may pull through with the help of the government. I don't know why she's pissed. Unless she thinks the private lenders are better partners in their little scam to obtain a McMansion. I work with someone in the same situation, and I hope he pulls through, although the foundation upon which these people obtain their real estate wealth is precarious. Idiot lenders gave money to idiotic borrowers without much attention to their real earning potential. They looked good according to the equations computers spouted out, and that's about it. From the very beginning their only hope of success was a bailout. No, it's not fair to people who ive with integrity, but I'm not going to sound bitter about it and hope them the best.

[WinkyDink]

4. One more time: David Gregory's FannieMae wife:

http://www.fanniemae.com/aboutfm/executives/wilkinson.jhtml?p=About+Fannie+Mae&s=Executives