Do as Feds Say, Not as They Do: Fannie and Freddie Give Bonuses -- Despite Losing Money

This is getting too easy.

Fannie Mae plans to pay retention bonuses of at least $1 million to four key executives as part of a plan to keep hundreds of employees from leaving the government-controlled company.

Fannie lost $59 billion last year and begged $15 billion from the federal government. And the losses are expected to continue:

Fannie Mae's losses are likely to continue, the company said. "We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009," the company said.

But, despite the catastrophic losses, Fannie plans to dole out "retention bonuses of at least $1 million to four key executives."

In response to this "federally run mortgage giant" paying bonuses to executives who helped drive the company deep into the red, Rep. Elijah Cummings (D-MD) demanded of Treasury Secretary Tim Geithner: "It is time that we stop rewarding failure."

No. I am sorry. Cummings said that about AIG; he has been silent on the Fannie bonuses.

Rep. Stephen Lynch, D-MA angrily compared the Fannie bonuses to "the captain and the crew of the ship reserving the lifeboats."

Ooops. Lynch was criticizing AIG too. I am sure he will be out there protecting the tax payers from the Fannie bonuses any day now.

TV talking heads are chattering about these "retention" bonuses; why pay a retention bonus to anyone in this economy? Where else are these people going to work?

Ugh; that was AIG, too, huh?

Meanwhile, over at Freddie Mac, the other "federally run mortgage giant," bonuses are on the way too. Like sister Fannie, Freddie has lost tons of money -- $50 billion last year alone. And keeping in the family tradition, Freddie came to Washington with hands out, hands much larger than Fannie.

However, unlike Fannie, Freddie has yet to disclose the amount of the bonuses and to whom they are being paid.

Old friend Barney Frank (D-MA) was quick to demand the names of the executives receiving the money:

Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee, demanded that the company submit to Congress a list "of people who received the bonuses..." If the names were not provided "without restriction," Frank warned, he would ask the committee to vote to subpoena them.

"We do intend to use our power to get the names," Frank wheezed in anger.

Ooops, I did it again! If you couldn't guess, Frank wasn't talking about Freddie Mac.

Well, members of Congress stumbled over each other to get the tax payers' money back from the Freddie executives:

"Recipients of these bonuses will not be able to keep all of their money," Senate Majority Leader Harry Reid said.

"If you don't return it on your own, we will do it for you," echoed Chuck Schumer, D-N.Y. "So for those of you who are getting these bonuses, be forewarned -- you will not be getting to keep them."

Darn it. AIG.

It must be the late hour. I keep expecting the same voices who condemned AIG for handing out bonuses despite the company losing money to be railing against Fannie and Freddie for handing out bonuses despite the company losing money.

I just know that the Democratic power elite will not stand by as Freddie and Fannie spend tax payer bailout funds on big-buck bonuses for a few rich executives.

Right?

I best not hold my breath....