There have been a lot of fireworks recently over the AIG bonus situation. Another similar controversy will soon be in the works, as Fannie Mae and Freddie Mac, two government-controlled financial companies, plan on paying out around $200 million in compensation to their workers as an "retention incentives" to remain on the job. Based on about 7,600 affected employees, this amounts to an average of slightly more than $25,000 per person. Fannie Mae alone has disclosed that four of its top executives will receive $1 million each to remain.
Both of these companies lost a total of over $100 billion last year and were taken over by the federal government. Guess who will be paying for these bonuses?
Hopefully the Obama administration and our federal legislators will assail this fiasco in a similar manner to that of AIG. If not, then we have precedent to a very costly and outrageous double standard being set.