Obama Outraged Over Executive Bonuses at Fannie Mae and Freddie Mac

Obama goes nuclear against the two lenders for issuing huge retention bonuses to their executives using bailout money:

Now before I talk about the new steps we’re taking to get credit flowing to small businesses across our country, I do want to comment on the news about executive bonuses at Fannie Mae and Freddie Mac. I think some of you have heard a little bit about this over the last few days. These are corporations that find themselves in financial distress due to recklessness and greed. Under these circumstances, it’s hard to understand how mortgage lenders at Fannie Mae and Freddie Mac warranted any bonuses, much less $210 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping these companies afloat?

In the last six months, Fannie Mae and Freddie Mac has received substantial sums from the U.S. Treasury. And I’ve asked Secretary Geithner to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole. I want everybody to be clear that Secretary Geithner has been on the case. He’s working to resolve this matter with regulator James Lockhart.

But I think Mr. Lockhart and certainly everybody involved needs to understand this is not just a matter of dollars and cents. It’s about our fundamental values. All across the country, there are people who are working hard and meeting their responsibilities every day, without the benefit of government bailouts or multi-million dollar bonuses. You’ve got a bunch of small business people here who are struggling just to keep their credit line open — that they are foregoing pay, as one of our entrepreneurs talked about, they are in some cases mortgaging their homes, and doing a whole host of things just in order to keep things afloat. All they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules. And that is an ethic that we have to demand.

Yeah, I don’t expect he’ll be saying anything like this anytime soon either.  I’m pretty sure demanding the ethic that everyone play by the same rules is reserved for those corporations that haven’t contributed huge sums of money to Democratic party leaders, including Obama himself.

In case you didn’t figure it out already, the above quote was simply an edited part of Obama’s speech about AIG bonuses. We all watched as outrageously outraged citizens were whipped into a frenzy by Democrats, threatening to bus demonstrators to AIG executives’ homes and to execute them with piano wire, yet the world remains strangely silent over automatic government pay increases and retention bonuses for the very organizations that got us into the mess we’re in right now.  Go figure.

Ed Morrissey reminds us that he pointed out this bonus plan 2 weeks ago and adds a little extra about Geithner’s qualifications.

Seton Motley warns to not hold your breath waiting for the pitchforks and torches from the media.


2 comments so far

  1. Mo on

    The problem is not Presidents, Obama, Bush, Clinton, secrataries, Geithner, Paulson, the problem with America’s financial system is THE FEDERAL RESERVE SYSTEM.

  2. Frank Wiggins on

    I am sick in my heart that my country has elected this socialist community agitator to the world’s highest position. His goal is to fan the flames of envy between corporate America and the underachievers of our country. I am fearful that he is using our own tax dollars to assist Acorn in producing a corrupted census that will maximize the power of his party to the detriment of America. The goal is to demonize individual achievement in favor of government help. Recently, a group of Congressional Democrats visited Cuba and came home singing the praises of Castro and his communal lifestyle and communist government. Is this cradle to grave ‘security’ the lifestyle for which people will sell their freedom & Liberty?

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