Despite multi-billion dollar losses, Fannie Mae will pay retention bonuses of up to $611,000 to its executives. Freddie Mac is expected to follow suit, though no concrete figures have been released. The bonuses, approved by the Federal Housing Finance Agency which was given regulatory authority over both companies after they were taken over by the federal government, are intended to keep crucial executives who got the agencies into this financial debacle from quitting.
Though large, the Fannie and Freddie bonuses shrivel in comparison to the million dollar bonuses given to multiple American International Group (AIG) executives.
first tuesday take: Will congress tax these Fannie and Freddie bonuses at a 90% rate as they seem intent on doing for the bonuses given to the AIG executives?
Re: “Fannie Mae to pay retention bonuses” from the Financial Times