Freddie Mac Fannie Mae bailout - PowerStrokeNation : Ford Powerstroke Diesel Forum
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post #1 of 48 (permalink) Old 11-16-2011, 02:14 PM Thread Starter
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Freddie Mac Fannie Mae bailout

This is old news in some respect but it boggles my mind how the liberal left are too stupid to recoginze the bs.

Also, as many forget, there was nearly an equal Dem/Rep control of senate since 2001 and the house of representatives was ruled by the dems from 07-2011. At the bear minimum, both parties had opportunity to fix or screw things up.

Barney Frank and other democrats, at a congressional hearing back in 07-08, bashed Bush saying conservatives were creating false alarms and the housing market wasn't going to crash.

Well, guess what libs, it did. Not only that, FHA now runs Freddie Mac /Fanny Mae and paid out 95 MILLION in bonuses. 5.5 million each to two guys, with a projected pay target of 6 million in 2011.
This is a US gov. run subsidization program so it is no wonder that liberal touchy feel good hippie types don't make an issue of it. Pay off 'the man' as long as it is a 'take care of the less fortunate' program.

Media liberals bitched about AIG but not a squeek about this.

As I am in the process of buying a house, it gets my dander up that a neighbor has a 425k home and she only has to finance half that due to a low income assistance program. The house in now in foreclosure, like nearly 80% of the homes that were financed under similar programs. What gets me further is with these down payment, finance assistance programs, etc. the interest rate, is lower than a standard 30 or 15 year fixed. So I have to keep my credit up to par, earn a good living to get a rate that is higher than someone who couldn't afford their dream home in the 1st place, but they still get to? Our neighbor admittedly does not work, has 6 kids, her cars are all less than 3-4 years old, including the cars for her older kids and the view into the house through the large a$$ bay window, her interior is decked out pretty nice as well.

My bs rant.

http://money.cnn.com/2011/11/15/news...conomy+News%29

WASHINGTON (CNNMoney) -- Executives at Fannie Mae and Freddie Mac need big pay packages to protect taxpayers from losing more of the billions spent to rescue the mortgage finance companies, according to the head of the agency that sets pay at the beleaguered firms.

"Taxpayers. . . would not be better off if we provoke a rapid turnover of senior management by further slashing compensation," said Edward DeMarco, acting director of the Federal Housing Finance Agency, in testimony Tuesday before the Senate Banking Committee. He said pay cuts and senior management turn-over could "increase the risk of higher losses," he added.

PrintComment
The net cost of the taxpayer bailout of Fannie Mae and Freddie Mac is about $124 billion -- dwarfing bailouts to any other financial firm. Those firms bought up many of the bad and underwater mortgages from Wall Street banks -- such as Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500) and Goldman Sachs (GS, Fortune 500) -- during the height of the financial crisis.

DeMarco added that executives who work at Fannie Mae and Freddie Mac, regardless of how well they perform their duties, "risk tarnish to their reputations" just by working at the firms.

Fannie Mae and Freddie Mac received the biggest federal bailout of the financial crisis, topping $124 billion. And $95 million of those tax dollars went to lucrative pay packages for top executives, filings show.

Reports on salary were made public by the companies earlier this year, but received little attention until a recent report by Politico, the political news website, which highlighted about $12.8 million in bonuses the executives received last year. Lawmakers in both parties are enraged.

0:00 / 2:30 Outrage over Fannie and Freddie bonuses
While DeMarco was grilled in the Senate, the House Financial Services Committee passed a bill to suspend executive pay packages at Fannie Mae and Freddie Mac with an overwhelmingly bipartisan vote of 52-4.

"Never again should Americans be forced to send their hard-earned tax dollars to be wasted on multi-million dollar pay packages for Fannie and Freddie executives," said that committee's chief Rep. Spencer Bachus, an Alabama Republican.

The Federal Housing Finance Agency set executive pay at the firms in consultation with the Treasury Department. The agency talked to the executive compensation czar for bailed-out banks, Ken Feinberg, when setting pay.

DeMarco stressed that good pay is needed to keep and retain executives who can manage tens of thousands of employees and some $5 trillion worth of mortgage assets.

But lawmakers said they were unmoved by such arguments.

"There's a big difference" between private financial firms and Fannie Mae and Freddie Mac, said Sen. Jon Tester, a Montana Democrat, criticizing the argument that mortgage finance firms compete with the likes of Wells Fargo (WFC, Fortune 500) for executives. "These companies (banks) are profitable and solvent, and they don't rely on taxpayer funds to keep their lights on," he said.

DeMarco said that executives didn't get bonuses or incentives in 2008, when the federal government took over. But senior management has since turned over since then. He also said that pay had been cut by 40% in the years that the federal government had taken over the firms.

Fannie CEO Michael Williams and Freddie CEO Charles Halderman each received about $5.5 million in pay for last year, and they could receive more when their final deferred compensation for 2010 is set. All the executives receive a significant portion of their pay in the year or years after they earn it.

The CEOs' pay targets for 2011 are about $6 million a piece -- though Halderman might not get much of that money since he's announced plans to leave Freddie sometime in 2012. He must still be at the company in order to receive the deferred compensation. His base pay for 2011 is $900,000, with most of the rest of his compensation coming in deferred payments.

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post #2 of 48 (permalink) Old 11-16-2011, 03:47 PM
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Re: Freddie Mac Fannie Mae bailout

stay posted,gandy will come by and tell you that you got it all wrong
and that your stupid.

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post #3 of 48 (permalink) Old 11-16-2011, 03:52 PM Thread Starter
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Re: Freddie Mac Fannie Mae bailout

true.
In another forum, someone asked me directly where i got my AE and I think it was him who told me something to the affect of 'you better watch it' or something like that and threatened to ban me because i mentioned "the unmentionable" not psn sponsor.

After talking to the neighbor, who was pleasant to talk to it just bugged me that she has, what I'd like but I cannot afford, yet for all intents and purposes neither can she but she does. But she is losing it now, which again screws w/ the rest of us.

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post #4 of 48 (permalink) Old 11-16-2011, 04:41 PM
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Re: Freddie Mac Fannie Mae bailout

Lots of bitching and complaining about "liberals", but not really any information regarding how Fanny/Freddie got into that mess in the first place.

Hint: it was BOTH sides of the isle, conservatives and liberals alike.

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post #5 of 48 (permalink) Old 11-16-2011, 06:32 PM Thread Starter
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Re: Freddie Mac Fannie Mae bailout

We got into the mess because the feds felt the need to push subprime lending plain and simple. Everyone has a dream to own a home bs. Banks were pressured to increase their lending despite lower credit score, changed the income/debit ratio and other lending practices were put into place. I have family in the mortage business so I got to hear about the new laws liberals were putting into place to help their voting base. So i'm being cynical but I cannot take advantage of any program since i'm single w/o kids and i'm not ethinically a minority so I can't even get minority/ethnic based programs.

Yes, both sides can take some blame but liberals jump on their soap box about how they support the little guy, minorities, etc.. push hard for the incentive programs then jump back on their bandwagon blaming the banks, corporations, republicans, etc.. when the system fails.

And yes, I wanted to bitch and complain.
My liberal neighbor is going into foreclosure since she was in a 425k house she shouldn't have been allowed to get into in the 1st place. I cannot get into housing programs since I haven't a herd of kids and I have a job. PLUS even though my credit score is 800+ i still can't get the lower interest rate that is used in the "low income" programs. The lowest APR from USAA, lending tree, etc.. is still higher. Since it is a SUBSIDIZED program, the gov has a lower interest rate.
AND the low income/down payment programs can be foregiven (dp assistance up to 25K).

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post #6 of 48 (permalink) Old 11-16-2011, 10:37 PM
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Re: Freddie Mac Fannie Mae bailout

Quote:
Originally Posted by Pocket View Post
Lots of bitching and complaining about "liberals", but not really any information regarding how Fanny/Freddie got into that mess in the first place.

Hint: it was BOTH sides of the isle, conservatives and liberals alike.
To underscore that point.......

Gingrich

Quote:
URBANDALE, Iowa (AP) Rising in national polls, Republican presidential candidate Newt Gingrich found himself on the defensive Wednesday over huge payments he received over the past decade from the federally backed housing agency Freddie Mac.

Gingrich said he didn't remember exactly how much he was paid, but a former Freddie Mac official said it was at least $1.5 million for consulting contracts stretching from 1999 to 2007. The official spoke on condition of anonymity to discuss a personnel matter.

Speaking with reporters in Iowa, Gingrich said he provided "strategic advice for a long period of time" after he resigned as House speaker following his party's losses in the 1998 elections. He defended Freddie Mac's role and said, "every American should be interested in expanding housing opportunities." Long unpopular among Republicans, the federally backed mortgage lender has become a focal point of anti-government sentiment because of the housing crisis.

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #7 of 48 (permalink) Old 11-16-2011, 10:51 PM Thread Starter
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Re: Freddie Mac Fannie Mae bailout

Newt is a two bit whore. He panders just like pelosi. My significant other works w/ newts nephew and he didn't want to discuss the issue(of newt) to much. Newt has given paid speeches at democrat union rallies and bad mouthed Bush. I have no liking of the guy either AK.

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post #8 of 48 (permalink) Old 11-17-2011, 02:13 PM
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Re: Freddie Mac Fannie Mae bailout

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Originally Posted by powerlifter405 View Post
We got into the mess because the feds felt the need to push subprime lending plain and simple. Everyone has a dream to own a home bs.
Not exactly.

The bigger and much larger problem from the federal government was the lack of oversight and removal of regulations. Remember that these sub-prime mortgages were de-regulated by the federal government, and then the private sector decided to give them A+ credit ratings and bundle them with other mortgages.

That's the real underlying cause.

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Originally Posted by powerlifter405 View Post
Banks were pressured to increase their lending despite lower credit score, changed the income/debit ratio and other lending practices were put into place.
False.

Banks eventually sell the bulk of their mortgages to secure agents such as Fannie and Freddie. However, as the housing market began to bubble, it was the private sector that stepped in and started buying more and more of that market share of loans. These non-government securitization agents had different qualification factors than Fannie/Freddie, with some of them having fewer and more lax requirements (such as lower credit scores and income/debt ratios).

Furthermore, it was the banks who were pushing these sub-prime loans. After all, if a bank can sell a sub-prime loan on the market just as easily as any other loan (and have it given an A+ credit rating), then what's to stop them from making as many of these loans as possible?

Quote:
Originally Posted by powerlifter405 View Post
I have family in the mortage business so I got to hear about the new laws liberals were putting into place to help their voting base. So i'm being cynical but I cannot take advantage of any program since i'm single w/o kids and i'm not ethinically a minority so I can't even get minority/ethnic based programs.
You got sucked into the rumor mill, rather than actual facts.

Quote:
Originally Posted by powerlifter405 View Post
Yes, both sides can take some blame but liberals jump on their soap box about how they support the little guy, minorities, etc.. push hard for the incentive programs then jump back on their bandwagon blaming the banks, corporations, republicans, etc.. when the system fails.
Now you're just making blanket assumptions about all "liberals".

Quote:
Originally Posted by powerlifter405 View Post
And yes, I wanted to bitch and complain.
My liberal neighbor is going into foreclosure since she was in a 425k house she shouldn't have been allowed to get into in the 1st place. I cannot get into housing programs since I haven't a herd of kids and I have a job. PLUS even though my credit score is 800+ i still can't get the lower interest rate that is used in the "low income" programs. The lowest APR from USAA, lending tree, etc.. is still higher. Since it is a SUBSIDIZED program, the gov has a lower interest rate.
AND the low income/down payment programs can be foregiven (dp assistance up to 25K).
Low income programs can't qualify for lower interest rates than those who are "bullets" in terms of credit. Doesn't matter if they qualify for subsidy programs, the interest rates for them can't drop that low. You're making baseless assumptions that stem from rumors.

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post #9 of 48 (permalink) Old 11-17-2011, 03:28 PM
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Re: Freddie Mac Fannie Mae bailout

When guys on here label conservatives they classify them in the realm of republicans, which there are conservative republicans and rhino republicans. Newt and many more are nothing but rhinos! You want true conservatives, look at Jim Demint, Ron Johnson, Marco Rubio, Allen West, etc to name a few. For the most part our whole congess needs a cleansing and I hope every year more and more of them get booted out with people who have actual street smart sensibility and ethics.

This chit with insider trading is again just the tip of the iceberg and once again many of us knew this type of chit was taking place. Money talks and BS walks. That is how deals get done and that is how many our laws get written. We are a class society, cause there are the haves and have nots already.
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post #10 of 48 (permalink) Old 11-17-2011, 04:24 PM
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Re: Freddie Mac Fannie Mae bailout

* On edit, I see that Gandy already covered this topic. Whoops.


To add another layer to this discussion. Newt was a consultant for Fannie and made millions in this gig.

First Read - Gingrich can't say how much he netted from Freddie consulting

His job description was primarily to give Fannie Mac suggestions on how to get what they wanted and needed from Congress, and they did.

To me, like everything that Politicians do, this is just a simple bribe but if the term "Paid Consultant" is in front of it, it is now legal.

Fannie Mac paid Gingrich millions, Fannie got what they needed out of Congress, Newt's lover enjoyed $500K in Tiffany's jewelry while his wife was left on her sickbed, and Americans get ####ed. Sound about right?

I'm officially...Stroke-less.
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