Tag Archives: TARP

Republicans want Obama to cancel Fannie Mae and Freddie Mac bonuses

From Fox News.

Excerpt:

A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government-seized mortgage giants Fannie Mae and Freddie Mac that received a $170 billion taxpayer-funded bailout.

“I am calling on the president of the United States to cancel those bonuses and explain to the American people, the taxpayers who bailed out Freddie and Fannie, why he continues to reward failure,” Sen. John Barrasso, R-Wyo., said at a news conference Tuesday.

The two housing giants have received about $141 billion in taxpayer funds since the government took them over in 2008 during the financial crisis.

Politico first reported the $6.46 million in bonuses for the top five officers at Freddie Mac — including $2.3 million for CEO Charles E. Haldeman Jr., who is stepping down next year — and $6.33 million for Fannie Mae officials, including $2.37 million for CEO Michael Williams, for meeting modest goals.

A second bonus installment for Freddie executives in 2010 has yet to be reported to the Securities and Exchange Commission, Politico reported.

So where will these million dollar bonuses come from?

Fannie and Freddie Bailout Chart
Fannie and Freddie Bailout Chart

They come from taxpayers. Obama’s millionaires and billionaires get the bailouts, you get the bill.

In case you are looking for a good summary of the subprime mortgage crisis, read this recent article from Investors Business Daily.

Darrell Issa and the Republican plan to clean up corruption

I am happy that Boehner and McConnell are going to push the ban on earmarks, but who is going to fix the corruption, fraud, and lack of transparency elsewhere in government?

Consider this article from Investors Business Daily.

Excerpt:

You may never have heard of Rep. Darrell Issa, but you will soon. Republicans have tasked him with cleaning up four years of Democratic misrule and misconduct. It’s a big job, but somebody simply must do it.

For proof, look no further than Tuesday’s dirty debacle with Rep. Charles Rangel, who walked out of a congressional hearing before being found guilty by the House ethics committee on 11 of 13 charges of misconduct.

[…]As the head of the House Oversight and Government Reform Committee, California Republican Issa has promised aggressive investigations of misconduct, wherever it occurs. We think it’s long overdue.

[…]The list of troubling government activities that should be investigated is a long one. Issa’s already looking into Fannie Mae and Freddie Mac. And he’s been openly critical of the Obama stimulus’ lack of controls and poor accounting practices.

He — or other GOP committees — may also look into AIG and the other bank bailouts, and answer who got money and why.

Then there’s the Countrywide VIP program, in which some Congress members got favorable mortgages. And don’t forget the $700 billion TARP program, the government’s takeovers of GM and Chrysler, the links between the left-wing community organizing group ACORN and the Democrats, and even U.S. Minerals Management Service misconduct prior to the BP oil blowout.

I would really like to see an investigation of where the bailout money and stimulus money went.

Have the Democrats finally stopped spending money on bailouts?

The AP reports that bailout spending is ongoing, despite Treasury Department claims that bailouts are over. (H/T ECM)

Excerpt:

The Treasury Department says its bank bailouts are over, but the spending continues.

In a Sept. 22 speech, Treasury Secretary Timothy Geithner said the bailouts “are completely behind us.”

That’s not quite correct. In the final six months in which it could spend money from the Troubled Asset Relief Program, Treasury set aside $243 million for new contracts for law firms, accountants and money managers to help run what’s left of the bailouts – on top of the $529 million already spent on work by staff, private companies and other agencies. Many of the contracts last until 2019, and there’s nothing to stop the government from hiring even more help if it’s needed to chase down the remaining bailout money.

Treasury’s authority to spend more from the $700 billion fund expired on Oct. 3. The law requires officials to recoup as much as possible of the $185 billion still in the hands of shaky private companies. After all collections are made, the government expects to be out about $51 billion, mostly from housing programs.

Rising voter anger ahead of next week’s elections has made Obama administration officials reluctant to speak candidly about the ongoing cost of managing TARP. Politicians who voted for the TARP law now face tough re-election fights. By downplaying their efforts, officials sidestep criticism of bailouts that helped Wall Street without easing lending or keeping many people in their homes.

A government watchdog said this week that public statements by Treasury officials around the Oct. 3 deadline appeared designed to create a mistaken sense that TARP is over.

“The idea that TARP is dead is just not accurate,” said Neil Barofsky, the special inspector general overseeing the program, in an interview. “People can write its obituary, people can declare that it’s been put out of its misery, but there’s still close to $180 billion of TARP money outstanding, and $82 billion obligated to be spent.”

ECM also sent me this article from the Heritage Foundation which explains how to cut $343 billion from the federal budget without breaking a sweat.