http://www.reuters.com/article/regulato … 09?sp=true
Are you kidding me? Way out of line doesn't even begin to explain it.WASHINGTON (Reuters) - U.S. Democrats on Tuesday criticized the multimillion-dollar pay packages awarded to the former chief executives of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) at a time when taxpayers could foot a massive bill for the companies' bailout.
In a joint letter to Fannie and Freddie's regulator, Senators Charles Schumer of New York and Jack Reed of Rhode Island said the combined pay and bonus packages of about $24 million should be revised.
"We find it way out of line," they said in the letter, saying the severance pay for former Fannie Mae CEO Daniel Mudd and former Freddie Mac CEO Richard Syron should be questioned especially if any financial losses could have been caused by errors in management.
OBAMA TROUBLED
Democratic presidential candidate Barack Obama, at a news conference in Riverside, Ohio, said he wrote to Treasury Secretary Henry Paulson and Lockhart on Monday urging them to put the interest of taxpayers first.
"I'm troubled by the news reports that the outgoing CEOs may be in line to receive multimillion-dollar severance packages as part of the Treasury plan," the Illinois senator told reporters.
"It would be unacceptable for executives of these institutions to earn a windfall at a time when U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources," he said.
If you ever needed a clear case of corruption there it is.OTHER PAY PACKAGES
Outrage against high severance packages for U.S. corporation chiefs has been brewing for many years.
While some may consider the "golden parachute" for Mudd and Syron high, it is a fraction of what was given to other CEOs whose companies were hammered by the mortgage crisis.
For example, former Countrywide Financial Corp CEO Angelo Mozilo took home $120 million, ex-Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) CEO Stanley O'Neal received a $161 million retirement package and former Citigroup (C.N: Quote, Profile, Research, Stock Buzz) CEO Chuck Prince got $39.5 million in stock, options, bonus and perks.
Mudd's predecessor, Franklin Raines, received an annual pension of $1.37 million when he retired from Fannie in late 2004.
Raines was also in line to receive $5.8 million in stock options and $8.7 million in deferred compensation to be paid through 2020, according to a U.S. regulatory filing.
Former Freddie Mac Chief Executive Leland Brendsel received a pay package of more than $50 million.
Both CEOs left their companies during a massive accounting scandal.
Xbone Stormsurgezz
