Qikdraw
09-11-2008, 12:59 PM
Two recent things that are just pissing me off...
Fannie Mae & Freddie Mac CEO Payouts (http://blogs.bnet.com/secdocuments/?p=59)
Democrats question Fannie, Freddie CEO exit pay (http://newsdaily.com/stories/n09290704-fannie-freddie-pay-congress/)
Under the government takeover plan of Fannie Mae and Freddie Mac announced Sunday, top executives and board of directors from both troubled mortgage lenders — which hold or guarantee more than $5.2 trillion of the nation’s $12 trillion of mortgages — are being replaced. Curious as to how much Daniel Mudd, the outgoing CEO of Fannie Mae, and Freddie Mac’s departing CEO Richard Syron would receive in case of removal from their positions, I checked in on details of respective employment agreements.
As neither man voluntarily retired or was removed for “cause” (material breach of contract), Mudd is entitled to receive cash severance of $1.98 million (two years of base salary) and a cash bonus of $2.23 million, according to Fannie Mae’s 2008 proxy filing. Syron should get $1.10 million (one-year’s salary) and a cash bonus of $2.64 million, according to Freddie Mac’s 2008 proxy filing.
In addition, Mudd holds pension benefits with a present value of $4.92 million and Syron has pension assets worth $1.46 million, as of December 2007.
If the government is taking over these companies because they don't have the money, then taxpayer dollars should not go to those that helped cause the problem in the first place.
Ford CEO Mulally Says Lawmakers Back Auto Makers (http://online.wsj.com/article/SB122089849441110965.html?mod=hpp_us_whats_news)
Laissez Faire Capitalism, American Style (http://www.dailykos.com/storyonly/2008/9/10/102616/707)
Now the Big Three find themselves in a bind. Gas prices, while down from their highs earlier this summer, are still near historic peaks. The economy is in shambles. Concerns about climate change and foreign energy dependence are rising. American consumers are turning to those foreign automakers in record numbers, while the Big Three are left holding the bag, with big trucks languishing on car lots and no relief in sight. They are losing mind-boggling amounts of money every month, and major percentages of market share to the Japanese companies. Even with the retooling of factories and the development of new models, it will be 2010 before small cars come rolling out of Detroit’s factories in any significant numbers. So what does Detroit do? Fall back into the same patterns of old and ask the US taxpayer for a bailout. Only they don't like the word "bailout", so they call it a loan. More corporate welfare.
In this case, $50 billion worth. That’s right, BILLION. And no surprise, especially in an election year, that the Wall Street Journal is quoting Alan Mullaly, CEO of Ford, as saying that more legislators are "in our corner." Congress passed a bill just last year that President Bush signed, which authorized up to $25 billion in loans to the automakers.
This is idiotic. The 'Big 3' actively campaigned against higher fuel effeciency, wanted less regulation, made piss poor business decisions which activly led to their failing companies, and now they want the government to bail them out. Use OUR money because they are too stupid to change. Didn't the gas shortage of the 70's teach these idiots anything? This is how foriegn companies made their break in the US. Small, cheap, fuel effecient cars. They kept doing this and pushing the technological edge of that, while American companies went back to bigger is better and pushing those off on us. Ford does make a 65 MPG car, but it is only sold in the EU.
I realise that if the government doesn't bail them out a lot of jobs will be lost, but there is a good possibility that Toyota or Honda will pick up those factories. Only towards hybrids or something like that. Or if we do bail them out that we put strict guidelines on how that money will be used. That and every executive is those companies only get paid a maximum of $100,000 per year. Reduce their high salaries, cause they were the ones that messed up.
I just think both things are messed up and show how idiotic this idea of American 'capitalism' is. How many times has the government bailed out big business? How many Billions or Trillions of TAXPAYER dollars has gone into this because of idiots in charge, who end up walking away with millions of dollars? Its freaking idiotic, and it needs to stop.
Fannie Mae & Freddie Mac CEO Payouts (http://blogs.bnet.com/secdocuments/?p=59)
Democrats question Fannie, Freddie CEO exit pay (http://newsdaily.com/stories/n09290704-fannie-freddie-pay-congress/)
Under the government takeover plan of Fannie Mae and Freddie Mac announced Sunday, top executives and board of directors from both troubled mortgage lenders — which hold or guarantee more than $5.2 trillion of the nation’s $12 trillion of mortgages — are being replaced. Curious as to how much Daniel Mudd, the outgoing CEO of Fannie Mae, and Freddie Mac’s departing CEO Richard Syron would receive in case of removal from their positions, I checked in on details of respective employment agreements.
As neither man voluntarily retired or was removed for “cause” (material breach of contract), Mudd is entitled to receive cash severance of $1.98 million (two years of base salary) and a cash bonus of $2.23 million, according to Fannie Mae’s 2008 proxy filing. Syron should get $1.10 million (one-year’s salary) and a cash bonus of $2.64 million, according to Freddie Mac’s 2008 proxy filing.
In addition, Mudd holds pension benefits with a present value of $4.92 million and Syron has pension assets worth $1.46 million, as of December 2007.
If the government is taking over these companies because they don't have the money, then taxpayer dollars should not go to those that helped cause the problem in the first place.
Ford CEO Mulally Says Lawmakers Back Auto Makers (http://online.wsj.com/article/SB122089849441110965.html?mod=hpp_us_whats_news)
Laissez Faire Capitalism, American Style (http://www.dailykos.com/storyonly/2008/9/10/102616/707)
Now the Big Three find themselves in a bind. Gas prices, while down from their highs earlier this summer, are still near historic peaks. The economy is in shambles. Concerns about climate change and foreign energy dependence are rising. American consumers are turning to those foreign automakers in record numbers, while the Big Three are left holding the bag, with big trucks languishing on car lots and no relief in sight. They are losing mind-boggling amounts of money every month, and major percentages of market share to the Japanese companies. Even with the retooling of factories and the development of new models, it will be 2010 before small cars come rolling out of Detroit’s factories in any significant numbers. So what does Detroit do? Fall back into the same patterns of old and ask the US taxpayer for a bailout. Only they don't like the word "bailout", so they call it a loan. More corporate welfare.
In this case, $50 billion worth. That’s right, BILLION. And no surprise, especially in an election year, that the Wall Street Journal is quoting Alan Mullaly, CEO of Ford, as saying that more legislators are "in our corner." Congress passed a bill just last year that President Bush signed, which authorized up to $25 billion in loans to the automakers.
This is idiotic. The 'Big 3' actively campaigned against higher fuel effeciency, wanted less regulation, made piss poor business decisions which activly led to their failing companies, and now they want the government to bail them out. Use OUR money because they are too stupid to change. Didn't the gas shortage of the 70's teach these idiots anything? This is how foriegn companies made their break in the US. Small, cheap, fuel effecient cars. They kept doing this and pushing the technological edge of that, while American companies went back to bigger is better and pushing those off on us. Ford does make a 65 MPG car, but it is only sold in the EU.
I realise that if the government doesn't bail them out a lot of jobs will be lost, but there is a good possibility that Toyota or Honda will pick up those factories. Only towards hybrids or something like that. Or if we do bail them out that we put strict guidelines on how that money will be used. That and every executive is those companies only get paid a maximum of $100,000 per year. Reduce their high salaries, cause they were the ones that messed up.
I just think both things are messed up and show how idiotic this idea of American 'capitalism' is. How many times has the government bailed out big business? How many Billions or Trillions of TAXPAYER dollars has gone into this because of idiots in charge, who end up walking away with millions of dollars? Its freaking idiotic, and it needs to stop.