Fannie Mae and Freddie Mac, those institutions of ‘higher standards’, are preparing to pay up to $210 million in retention bonuses: In a compensation program that has drawn angry protests from politicians, Fannie Mae and Freddie Mac expect to pay about $210 million in retention bonuses to 7,600 employees over 18 months, according to a […]
A comprehensive look at coverage of the weekend’s Fannie Mae/Freddie Mac story, compliments of The Big Picture.
Can’t bear to watch, but you do get some choice quotes… The understatement of the day, from The Independent: The US Treasury is close to a deal to prop up the mortgage finance giants Fannie Mae and Freddie Mac, whose crumbling finances have put the US housing market in jeopardy and threatened to turn an […]
Via The Wall Street Journal: Trying to defend the mortgage giants, Paul Krugman of the New York Times recently wrote, “What you need to know here is that the right — the WSJ editorial page, Heritage, etc. — hates, hates, hates Fannie and Freddie. Why? Because they don’t want quasi-public entities competing with Angelo Mozilo.” […]
This question posted on LinkedIn was too good to pass up: Does anyone else think Fanny May and Freddie Mac sound more like cartoon characters than finance companies? I’m thinking Wile E. Coyote and Homer Simpson, only not quite as funny. Your thoughts?
As previous noted, Paul Krugman of the New York Times tried wishing away Fannie Mae and Freddie Mac’s problems by pinning the housing crisis on sub-prime. Now the guy is contradicting himself, while claiming more informed statements are non-contradictory. Krugman said… Fannie and Freddie had nothing to do with the explosion of high-risk lending a […]
Via Bloomberg: Chances are increasing that the U.S. may need to bail out Fannie Mae and the smaller Freddie Mac, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, […]
Is Fannie Mae building a new ATM? Incentive for default…crumbling balance sheet…taxpayer bailout? Haven’t heard that before.
This scenario is now a reality.
So lets give it some before the situation spirals even further out of control. The Washington Post reports: Study Finds ‘Extensive’ Fraud at Fannie Mae. I’ve hinted that where there’s fraud, there are usually bigger problems, and in the case of Fannie Mae I think there is a lot more to the story than just […]