Skip to main content

There was an unexpected issue forwarding you to "Twitter" for authentication. Please try again later.
×
What kind of BS is this? If the government is bailing out the conpany, why are these dorks not feeling any heat?

Fannie Mae CEO Donald Mudd= $9.3million
Freddie Mac CEO Richard Syron= $14.1 million
____________________________________________________ Got no love for politicians Or that crazy scene in D.C. It's just a power mad town But the time is ripe for changes There's a growing feeling That taking a chance on a new kind of vision is due I used to trust the media To tell me the truth, tell us the truth But now I've seen the payoffs Everywhere I look Who do you trust when everyone's a crook? Revolution calling Revolution calling Revolution calling you (There's a) Revolution calling Revolution calling Gotta make a change Gotta push, gotta push it on through catch
Original Post

Replies sorted oldest to newest

What kind of BS is this? If the government is bailing out the conpany, why are these dorks not feeling any heat?

Fannie Mae CEO Donald Mudd= $9.3million
Freddie Mac CEO Richard Syron= $14.1 million---ocatchings



In a word...contracts.

My first guess is contracts.

Senior Executive employment contracts are extraordinarily 'tight' regarding the limiting of liability.

Exemption of liablity consequent to executive decision making is an absolute priority.

Insurances are purchased to protect against acts of commission AND omission.

Corporation liability is assigned for liability both civil and criminal.

Compensation is assigned for any, and often all, of the above.

Small story:

I once prosecuted a company on 23 counts against each of three defendants...totaling 69 counts before a single court.

At the hearing, the plant manager thank me!!!!

In compensation...ALONE...his contract required the company to pay him $10,000.000 per count...PLUS...some period of time from work...with standard pay to 'recover'.

These benefits were outside of, and beyond, any production-based premiums and/or bonuses.


I say contracts.

PEACE

Jim Chester
For CEO's, it called The Golden Parachute.

An employment agreement that guarantees a key executive lucrative severance benefits if control of the company changes hands followed by management shifts. Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job.

Benefits include items such as stock options, bonuses, severance pay, etc.

These contractual agreements are established during job negotiations (usually done through that executive's agent) prior to top executives (approved by the company's Board of Directors) being officially hired.

Fannie Mae fired its previous CEO, Franklin Raines, an African American, in December 2004 after accounting errors forced the company to restate profits by $9 billion. His golden parachute: receives an annual pension for life of $1.37 million when he retired from Fannie in late 2004.

Raines was also in line to receive $5.8 million in stock options and $8.7 million in deferred compensation to be paid through 2020, according to a U.S. regulatory filing. Raines was Fannie Mae CEO from 1991 until 2004.

It does not matter if the entity goes belly up. The parachute is already factored into the CEO's final compensation package which is just the exact opposite for everyday working folk, the Severance Package.

A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:

An additional payment based on months of service.

Payment for unused vacation time or sick leave.

A payment in lieu of a required notice period.

Medical, dental or life insurance.

Retirement (e.g., 401K) benefits.

Stock options.

Assistance in searching for new work, such as access to employment services or help in producing a résumé.

Severance packages are most typically offered for employees who are laid off or retire.

Sometimes, they may be offered for people who resign, regardless of the circumstances; or are fired.

Policies for severance packages are often found in a company's employee handbook, and in many countries are subject to strict government regulation.

Severance contracts often stipulate that the employee will not sue the employer for wrongful termination or attempt to collect on unemployment insurance, and that if the employee does so, then he must return the severance money.
First off these people should be fired not rewarded.

Second, the government has no right to tell me that i now have another trillion dollars that i am accountable for.

Third, This just perpetuates the fall that is going to be incurred.

These institutions should have been allowed to fail regardless of the results. If you give risky loans and they fail, that is a business decision that you have to live with. It would have been dark times, but less so then the ones when all the governmental backed corporations get hit.

Free markets will regulate this. What if China called in all the loans, the US would be screwed and not be able to pay unemployment, welfare, social security, home heating, ect.

There is no reason to back up bad decisions by making more bad decisions on a federal level. This only encourages large corporations to make risky decisions because they know they can become to large to fail. Once this happens the government will bail them out.

This is governmental corporate financing. We need to allow these large companies to fail, we do not need to be run by large corporations that influence (and now run) the federal government.

The government needs to realize its role and stay the hell out of these kinds of things. Yes there will be recessions and their will be upswings. This is the economical cycle and it should not be subsidized by the government to make all times peachy, because the fall will be very very very very difficult, instead of very very difficult if we keep letting the government deal with it.
quote:
These institutions should have been allowed to fail regardless of the results. If you give risky loans and they fail, that is a business decision that you have to live with.


Jokey-boy, your analysis shows an amzing amount of ignorance regarding these GSO and their role in the economy.

Your solution is a kind to treating cancer by letting the patient die.

Add Reply

Post
×
×
×
×
Link copied to your clipboard.
×