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Now, If congress would step up for the Airlines

Ky.BrownBourbn

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Feds block big payouts to ex-CEOs of Fannie, Freddie

Ousted bosses were to get nearly $24 million in going-away money.

By ALAN ZIBEL
Associated Press
Posted: Tuesday, Sep. 16, 2008
WASHINGTON The federal government will not pay the ousted chief executives of mortgage finance companies Fannie Mae and Freddie Mac up to $24 million in exit packages.
The Federal Housing Finance Agency notified former Fannie Mae CEO Daniel Mudd and former Freddie Mac CEO Richard Syron that such “golden parachute” payments will not be paid. The housing agency, which took control over the companies earlier this month, made the announcement Sunday.
“It would have been unconscionable to award these inflated salaries, particularly when the leadership of Fannie and Freddie can hardly be given good grades,” Sen. Charles Schumer, D-N.Y., said in a statement.
Mudd had been due to receive up to $8.4 million in compensation, while Syron was due to receive up to $15.5 million, according to calculations by David Schmidt, a senior consultant at executive compensation consulting firm James F. Reda & Associates.
Representatives of Syron and Mudd declined to comment Monday morning. Mudd received $12.2 million in compensation in 2007, and Syron was paid $19.8 million.
Herbert Allison was named the new chief executive of Fannie, and David Moffett the new CEO of Freddie as part of the government's bailout of the agencies. Fannie and Freddie own or guarantee about $5 trillion of the nation's mortgages, roughly half the nation's total.
James Lockhart, the housing agency's director, has said compensation for the new executives will be “significantly lower than (for) the outgoing CEOs.”
 

RedDogC130

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No, the airlines should not get bailouts...they got them once after sept. 11 2001. No more....let the industry filter out the weak and let the one's that can survive...well survive. The bailouts are not what this industry needs...I hate to say it but we need less airlines...this is not a mine versus yours....it is a fact.
 

Ben Wagner

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No, the airlines should not get bailouts...they got them once after sept. 11 2001. No more....let the industry filter out the weak and let the one's that can survive...well survive. The bailouts are not what this industry needs...I hate to say it but we need less airlines...this is not a mine versus yours....it is a fact.

I think KBB was talking about the bonuses, not the bailout.
 

400pilot

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Fannie Mae and Freddie Mac have been taken over by the federal government. Do you want the federal government to "step up" and take over the airlines so that they will then be in a position to limit CEO's salaries? Maybe you want the government to "step up" and dictate how much a company can pay their CEOs and executives. I don't think we really want the government dictating or regulating salaries of anyone in private industry. That's a pretty slippery slope....
 

Dizel8

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Huh?
True 400, conversely though, if the government has to bail out the companies, then there should be no bonus to management.

Latest to got some serious dinaros is AIG, they shouldn't be awarding bonuses to anyone at that company. As a matter of fact, I think the goverment should force the CEO etc. to give back any bonus they earned last year, after all, the truth of their financial shenanigans is now becoming clear.
 

Dan Roman

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Simple fact is what is happening is a result of lack of Government oversight on corporate America and greed got out of control. Big risks were taken in an attempt to increase stock prices. HUGE bonuses were taken rather than investment made in a companies long term health. Just witness what happened at United, after the employee's were raped, 400 million was paid out in management bonuses and shortly thereafter, 400 mil was paid out in stock dividends. Yet the company is still in horrible shape and Glenn Tilton is one of the highest paid CEO's in the industry. That's wrong and it's happening all over America. A very small percentage of society has managed to pocket 100's of millions of dollars and the rest of us are paying for it.
 

Dan Roman

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True 400, conversely though, if the government has to bail out the companies, then there should be no bonus to management.

Latest to got some serious dinaros is AIG, they shouldn't be awarding bonuses to anyone at that company. As a matter of fact, I think the goverment should force the CEO etc. to give back any bonus they earned last year, after all, the truth of their financial shenanigans is now becoming clear.

Right you are. Why should these companies still pay huge salaries to these greedy CEO's who screwed up. Usually when an airline is reorganized, it's employees have to take large paycuts, why should taxpayers subsidize such a blatant case of greed trumping good management.
 

400pilot

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True 400, conversely though, if the government has to bail out the companies, then there should be no bonus to management.
In the case of a bailout loan (like AIG), I agree. In essence, we the people have become shareholders, or at least own a financial interest. I personally don't want any of the money spent on executive bonuses or parachutes. Of course, the FMs are now nationalized and they can do whatever they want. My original response was directed at the first post....
 

BoilerUP

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There are big differences between the two mortgage giants and any airline...

Between Fannie, Freddie, Bear Stearns, the PBGC and now AIG our government very likely could have its credit and bond rating cut...and if there are many more bank failures and "bailouts" it could possibly put our government into bankruptcy.
 

Jon Rivoli

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Fannie Mae and Freddie Mac where quasi government "businesses" the leadership being chosen more for political reasons than mortgage experience. During the housing bubble politcal pressure ecouraged instituions to relax lending standards and loan money to people who would not normally qualify. This was done to encourage home ownership, a worthy goal. Fannie and Freddie are involved in about half the mortgages in this country making them ideal instruments to further this goal. We all know how this turned out in the end. As is normally the case when government interferes with markets, the law of unintended consequenses is a biotch.
As a side note, two former directors of these companies who collected a combined total of around $175 million is compensation during their tenures are now economic advisors for a certain presidential candidate whom this past week claimed that our entire economic system has failed. Thats irony.
 

Captzaahlie

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There are big differences between the two mortgage giants and any airline...

Between Fannie, Freddie, Bear Stearns, the PBGC and now AIG our government very likely could have its credit and bond rating cut...and if there are many more bank failures and "bailouts" it could possibly put our government into bankruptcy.


Like it's not heading in that direction already?
 

Captzaahlie

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..that's what I was saying...

It's "our" tax dollars saving them.....
Let them tank.
I'm tired of saving everyone with my my tax money and governments misuse of funds.....
Some accountability is needed and overdue.

That's what I'm saying.........
 

Ky.BrownBourbn

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No, the airlines should not get bailouts...they got them once after sept. 11 2001. No more....let the industry filter out the weak and let the one's that can survive...well survive. The bailouts are not what this industry needs...I hate to say it but we need less airlines...this is not a mine versus yours....it is a fact.


I am againist Bailouts....These business should have tanked, Sorry but the Economy is already in the crapper...

I was agreeing with the bonuses, Any ceo who does shady operations and runs the business into the ground should get nothing but Jail Time. How many airlines were raped and Pilage by these "outstanding" managers and were given bonuses for Saving the company at the Employees and Stock Holders Expense.

I agree that the airlines shouldn't be bailed out, It is time to let nature take its course, I've been through it in the late 80's, Early 90's and then again after 9/11, It's time to let those that can make it, make it and those that can't, not. Sorry but that's the facts!

KBB
 
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