শনিবার, ১২ নভেম্বর, ২০১১

Regulator says Fannie, Freddie bonuses necessary (AP)

WASHINGTON ? The government regulator of Fannie Mae and Freddie Mac says million-dollar bonuses paid to executives at the companies were necessary to keep the mortgage giants running.

Edward DeMarco, the acting director of the Federal Housing Finance Agency, writes in a letter to U.S. lawmakers that paying a total of $12.8 million in bonuses was a way of keeping talented executives with the companies. Without them, U.S. taxpayers would incur greater losses.

The government rescued Washington-based Fannie and McLean, Va.-based Freddie three years ago after they nearly folded because of big losses on risky mortgages they purchased. Taxpayers have spent about $170 billion to rescue the two firms, the most expensive bailout of the 2008 financial crisis. The government estimates the bailout could reach up to $220 billion through 2014.

Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/ap/20111110/ap_on_bi_ge/fannie_freddie_bonuses

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