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Investment Banks Stand to Gain From Government Bailout- CEOs of Fannie Mae and Freddie Mac Earned Roughly $30 Million in Salary Last Year

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Real Estate Agent with Accessibility & The Power to Advise

I would love to know how many in government officials own preferred stock in Freddie Mac and Fannie Mae...just curious.

CEO Salaries Weather Mortgage Crisis

CEOs of Fannie Mae and Freddie Mac Earned Roughly $30 Million in Salary Last Year

By JUSTIN ROOD
July 21, 2008

The chiefs of the nation's two largest mortgage lenders reaped roughly $30 million in salary, incentives and other perks last year, despite setting their banks on courses which now may require government bailouts.

 Here is an interesting paragraph: 

"What worries me is the complete lack of accountability by Fannie's and Freddie's executives" and investment bankers who stand to gain from a government bailout, former Clinton administration Labor secretary Robert Reich told Newsweek magazine recently.

 "We've created the worst form of socialized capitalism," Reich said, "private gains combined with public losses."

 I would definitely keep an eye on this statement and what actually happens:

Rep. Barney Frank, the Democratic chairman of the House Financial Services Committee, has proposed requiring the government to approve the salaries of top executives at both firms, to make sure they are "reasonable."

Good thing the government is watching...but, wait a minute...

USA Today: Congress Gets $4,100 Pay Raise - Posted 1/9/2008 (Old News But Still Worth Reading)

House Democratic leaders joined with their Republican counterparts to oppose a procedural vote to bring the COLA issue to the floor, leaving the way clear for their automatic raise.

"... WASHINGTON (AP) - Congress members in 2008 will receive salaries of $169,300, a boost of $4,100 over the salary they have had since January 2006.

 

REAL TIME ECONOMICS -  Economic insight and analysis from The Wall Street Journal.

 September 7, 2008, 11:51 am

Officials' Statements on Fannie Mae and Freddie Mac (Read Article and comments)

 

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