Wednesday, November 2, 2011

Bonuses for Failing!

Fannie Mae and Freddie Mac approved to give their executives a total of 12 million dollars in bonuses! I do not think these companies should be giving their executives, especially if these executives are they ones that were part of the Fannie Mae and Freddie Mac when they were given the over 100 billion dollar bailout.

From a business standpoint I can understand, if these executives were around at the time of the bailout, why they would give them bonuses. One reason would be that these execs helped Fannie Mae and Freddie Mac receive tons of money from the government. Why wouldn't you give them bonuses for getting free money.

Some politicians and other people are speaking out and want the government to intervene to make Fannie Mae and Freddie Mac stop the bonuses.  While some people may agree I do not think it is possible. Fannie Mae and Freddie Mac are private companies. Yes they receive some funding from the government but again they are private companies.

I am sure this has happened in previous years but it was never brought up as much as it is being now.

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