Golden parachutes for Fannie Mae and Freddie Mac executives?

Billions in taxpayer money, millions in executive pay

After $130 billion taken in direct taxpayer money since 2008, mortgage financiers Fannie Mae and Freddie Mac are now under fire by a FHFA Inspector General report which notes the company executives were awarded giant salaries in recent years without proper written procedures or analysis.

Since the finalization of the two mortgage giants’ government ownership in 2009, the heads of Fannie Mae and Freddie Mac were paid a total of $17.1 million and the top six executives were paid $35.4 million during the same period.

The FHFA is the regulator of Fannie Mae and Freddie Mac and in the past has staunchly defended the salary levels of the executives which is what makes this report especially significant.

“FHFA also does not provide sufficient transparency to the public of the Enterprises’ executive compensation program,” the report stated and continued with recommendations that FHFA establish ongoing review and analysis of the process.

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The ultimate golden parachute

Even before the government took over ownership of Fannie Mae and Freddie Mac, there was talk of disbanding both and restructuring the entire system, a theory that is no longer a simple idea but is supported by both sides of the aisle.

As talks have become more serious, are the executives are strapping on their golden parachutes in preparation for when the lights go out with no oversight? Are they ransacking the supply closet before they get fired?