What About Fannie & Freddie Bonuses?

Highlights include American International Group, Inc. (AIG), Fannie Mae (FNM) and Freddie Mac (FRE).

As the uproar and outrage about AIG (AIG) bonuses continues, the issue of unwarranted bonuses has drifted toward other financial behemoths that have lately received significant federal government aid -- specifically Fannie Mae (FNM) and Freddie Mac (FRE).

Getting a bit ahead of this issue is Democratic representative Barney Frank, who has asked the Federal Housing Financial Agency to cancel retention bonuses for Fannie Mae and Freddie Mac executives. This follows the passage of a bill in the House yesterday that would put a 90% tax on bonuses paid to AIG execs with taxpayer funds.

We are apparently in the mode of "throw it at the wall and see what sticks." Several different proposals have been floated to deal with the perceived greed and insensitivity of issuing big bonuses to those at least somewhat responsible for the downfall of the U.S. financial system, which has now clearly had global affects.

At very least, Rep. Frank has thus far saved face from any potential charges of hypocrisy. If Congress is in an uproar about AIG receiving bonuses, why would allowing Fannie and Freddie to receive them be OK?

Read the full analyst report on FRE