Skip to comments.Fannie and Freddie Big Wigs Under Fire For Lavish Spending and Bonuses
Posted on 12/01/2011 4:24:54 PM PST by mandaladon
Embattled government mortgage giants Fannie Mae and Freddie Mac were under fire again Thursday as the House Committee on Financial Services grilled leaders on "lavish" spending and executive pay.
This after the government mortgage giants both posted huge losses last quarter and have appealed to the Treasury Department for more fundsalmost $14 billion between themto shore up their shaky balance sheets.
With a hefty dose of indignation, Texas Republican Rep. Randy Neugebauer railed on Fannie Mae chief Michael Williams about more than $5 million budgeted for "meals and social activities" for employeeswondering why a taxpayer-funded organization in major financial trouble was throwing cash away. A conference in Chicago, first reported by the Wall Street Journal, set back the government-sponsored enterprises nearly $700,000, including $74,000 spent on dinners by Fannie and Freddie over the course of the two-day conference.
"Do you understand the outrage?" asked Pennsylvania Republican Rep. Michael Fitzpatrick.
Freddie Mac CEO Charles Haldeman, Jr. defended the spending, saying overall the company had reduced its expenses from the prior year, while acting FHFA director Edward DeMarco admitted certain individual expenditures "could have been done away with."
Massachusetts Democrat Rep. Michael Capuano hammered the mortgage leaders over their lavish bonuses and compensation, but was rebuffed by Haldeman who argued those earning the big bucks were worth every penny.
(Excerpt) Read more at usnews.com ...
No problem, give newt a few million he will make it go away.
Those two stupid neanderthal obviously communist leaning congresspersons just don’t believe in capitalism.
Newt was feeding at the Fannie and Freddie trough soon after he left Congress -- at least $1.6 million worth.
Gingrichs first contract with the mortgage company was in 1999, five months after he resigned from Congress and as House speaker, according to a Freddie Mac press release.
His primary contact inside the organization was Mitchell Delk, Freddie Macs chief lobbyist, and he was paid a self- renewing, monthly retainer of $25,000 to $30,000 between May 1999 until 2002, according to three people familiar with aspects of the business agreement.
During that period, Gingrich consulted with Freddie Mac executives on a program to expand home ownership, an idea Delk said he pitched to President George W. Bushs White House.
He was so slimy that he didn't even register as a lobbyist. He knew (and still knows) the Washington lobbying ropes well. He was able to get around all the lobbying restrictions by framing himself as a "consultant."
The "consultant" garbage is classic Newt.
Please don't be fooled by him.
Newt is a snake-oil salesman, the ultimate insider and totally corrupt.
Newt stands for everything the Tea Party is fighting against.
We must fight against him.
Does anyone really think the fng creeps care? Who’s got the balls to take the money away from them? Certainly not Fwank or Dodd, hussein or even the congress.
He was not an employee, he was under contract. Go after the real culprits here. I am not defending him, i am concerned that you are going after the Guppie while the sharks swim away. There is plenty of blame to go around with fannie and Freddie. Newt was a low man on a very high totem pole. How about starting at the top and working your way down?
Some of those “public servants” walked away with millions or tens of millions of dollars. These are some of the biggest criminal enterprises “outside” (ha) of government.
Franklin Raines and Jaime Gorelick walked away with HOW MUCH??
wow. Chummy politicians feeding at the trough.
Corrupt people exist everywhere. The totally “private” MF Global is a great example of that.
when a totally private company goes down the taxpayers don’t lose anything.
How many billions did we lose in GM and Freddie/Fannie??
Every establishment RINO must go, with Boo Hoo Boehner at the top of the list.
I oppose bailouts vociferously. It is not within the defined powers of government.