Saturday, December 26, 2009

Are Bonuses for “Fat Cats” Bad? Depends on Which “Fat Cat”

That was then:

US President Barack Obama has hit out at Wall Street "fat cats," expressing anger that banks bailed out by the government again plan huge bonuses as millions of Americans battle poverty and unemployment.

"I did not run for office to be helping out a bunch of fat cat bankers on Wall Street," he said in an interview with CBS television to be aired today.
And this is now:

The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. (emphasis added)

The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama's current term.

But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009. (emphasis added)

Let’s see, the “fat cats” who are paying back the taxpayers are undeserving of bonuses but the crooks at Fannie and Freddie who were instrumental in causing the housing bubble and are permanently living off the taxpayer dime, now they deserve bonuses of up to six million dollars each. Gotcha.

While President Obama has been demanding accountability of Wall Street he sets a different standard, a lower standard, for himself and his administration.

2 comments:

Old Retired Petty Officer said...

I was thinking of a no standards administration. In everything I read there is a blatant lack of any values or standards, period.

Carol said...

Well, when they are paying with the taxpayer's money, the sky is the limit.