In an April 4, 2009 article in the New York Times, “Big Bonuses at Fannie and Freddie Draw Fire”, Times journalist Charles Duhigg reports that
“…the two troubled companies at the heart of the nation’s mortgage market, are set to pay [7,600] employees “retention bonuses” totaling $210 million, despite [criticism and] calls from [some] lawmakers to cancel the payments.’ Duhigg further states, “Similar bonuses paid by the American International Group, which was also bailed out by taxpayers, incited fiery attacks from the White House and legislators when they were revealed last month.”
So are these situations, one with Freddie and Fannie and the other with AIG, the same or different? Should we permit taxpayer dollars to be used for bonus payments for any of the “bailed out” companies? Should government stay out of it, and leave the business decisions to business leaders?
The answers may surprise you,
Continue reading “Freddie, Fannie and AIG – It’s Just Not So Simple” »