America’s economic crisis was triggered by the home mortgage fiasco called Freddie Mac and Fannie Mae. Democrats resisted regulation called for in 2003, claimed the institutions were solvent as of last summer, and when all hell broke loose, blamed it on Republicans and lack of regulation.
In a letter sent last week to Senator Charles E. Grassley, an Iowa Republican, federal regulator, James B. Lockhart disclosed that 7,600 Fannie and Freddie workers were scheduled to receive payouts aimed at retaining those “employees most critical to keep and difficult to replace.” Under the plan, 213 employees will receive retention bonuses worth more than $100,000 this year, and one Freddie Mac executive will receive $1.3 million.
Those figures drew sharp rebukes from Mr. Grassley and other lawmakers, who noted that Fannie and Freddie had received pledges of $400 billion from taxpayers to offset huge losses since they were seized by the government in September. Similar bonuses paid by the American International Group, which was also bailed out by taxpayers, incited fiery attacks from the White House and legislators when they were revealed last month.
While AIG employees’ homes were picketed by angry ACORN/union mobs for bonuses in their contracts, Fannie and Freddie employees will enjoy an early Christmas. Don’cha love how government works?
