Tuesday, September 9, 2008

Don't you love it...

Taxpayers are now on the hook for tens of billions of dollars of capital necessary to save Fannie Mae and Freddie Mac. The CEOs of both companies–the ones who ran them into the ground–have thankfully been shown the door. But they’re taking a nice pot of money with them.

Specifically, Dan Mudd, the CEO of Fannie Mae, is getting $9.3 million of severance for destroying his company. Richard Syron, the CEO of Freddie Mac, is getting $14.1 million–in part because of a clause he added to his employment contract two months ago, when it was clear the company was headed for disaster…

The severance money comes right out of the pockets of taxpayers, who didn’t agree to the severance deals and aren’t ponying up to save the companies because they want to. Taxpayers are saving Fannie and Freddie because they have to–because Mudd and Syron were incompetent.

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