Fannie and Freddie received $169 billion dollars in taxpayer funded bailouts after the mortgage crash.  Many say that Fannie and Freddie actually contributed to the crash.  However November 2011 it was revealed that they planned to issue their 12 executives seven figure bonuses, totaling $12.79 million. Timing is everything. "These bonuses have come just as Freddie and Fannie have asked for an additional $13 billion in handout from the taxpayers," says Darrell Issa, R-CA.

The bonuses were approved by the Federal Housing Finance Agency. Congress acted, it formed a committee.

Even though the President continues to eviscerate banks and private investment houses for doling out bonuses, the White House was and is silent on the quasi government Fannie and Freddie bonuses.

The house committee, chaired by Issa voted 52-4 to stop those bonuses and any future ones, as well as reduce executive pay to standard federal levels. Even outgoing Barney Frank voted for it because “I had hoped that they would use restraint on their own because I think it’s better that we not intervene,” Frank, of Massachusetts, said today. “But they did not.”  Not much felt moral responsibility there.

In reply Charles Haldeman, the head of Freddie Mac said "We have 9 percent unemployment in our country, and there are millions of families at risk of losing their homes. I understand the outrage (over executive compensation)," he said.  But, Ed DeMarco’s informs that we need to pay multimillion dollar bonuses to lure “qualified” executives to the positions. He contends it is best for "the people" to have such executives overseeing their money and minimizing losses. Uh huh.  DeMarco goes on to describe the enormity and complexity of the work. However the results these qualified and highly bonused executives have achieved are mediocre at best. Some accuse them of worse.

The Obama administration has been frequently and sharply critical of bonuses for private sector executives. It has been silent on Freddie and Fannie’s bonuses which are, according to the Daily Caller three times larger than those received by the oft Obama maligned Wall Street executives.

Chairman Issa reminded his committee of President Obama's remarks about AIG, which also gave out bonuses while it was being bailed out.

"I see reports of massive profits and obscene bonuses in some of the very firms who owe their continued existence to the American people," Obama said. He continued "I did not run for office to be helping out a bunch of, you know, fat cat bankers on Wall Street." One could add, “unless they are employed by Freddie and Fannie.”  Patrick McHenry, R-NC, said. "… it is somewhat strange to me that in an area where he could exert influence, he has chosen not to."

DeMarco reported that while Fannie and Freddie are making progress, they are unlikely to ever pay back all the taxpayer support. One assumes that is one of his less comforting remarks.

The US has no monopoly on opportunistic bonus awards. In Britain the Labor (Democratic) Prime Minister Gordon Brown has been criticized for failing to act over what could be seen to be “unconscionable” bonuses paid to banking professionals.  The Financial Services Authority has said that the multimillion dollar payouts may have worsened the economic crisis for the entire country.

The Scotsman.com reports Mr Brown was also ridiculed for a "totally inadequate" response to news that Royal Bank of Scotland, which was kept afloat with 20 billion pounds of public cash, was preparing to pay staff about 1 billion in bonuses.” Despite huge tax payer funded bailouts the Royal Bank of Scotland prepared to pay a one billion slab of that taxpayer money to bank executives. When Gordon Brown chose not to act the conservative leader David Cameron begged him to “protect the tax payers investment and ensure there would be no more indefensible bonus packages.” Mr Brown did not. The only course left for the conservatives was to plead for the bankers to show “moral responsibility” and refuse the bonuses. Was he serious? One could predict the outcome of that plea. Instead of the called for moral responsibility Mr Fox, Lawyer for the bankers said that some bankers are "quite angry" at not receiving their contracted bonuses.

Lord John Prescott former deputy prime minister of the Labor Party, most closely aligned to US Democrats called for the Scottish Bank to refuse bonuses for its bankers and traders. He attempted to marshal an “on line” army to record its anger and opposition to the bonuses. The petition calls the bonuses “morally and economically outrageous”.

And like Obama, Brown appears to be MIA. Mr Cameron, conservative minority leader, said: "It does appear that the government has been completely asleep on the job."

In his own defence Mr Brown, who is reportedly “angry - very angry” said: "We are in discussion, on a case-by-case basis, with the banks that want to take up the scheme about the level of executive remuneration, especially the bonus system that has caused so much difficulty." So while he "discusses" the bonuses continue.

This side of the pond, or that, there is an abundance of discussion, anger and a lack of felt moral responsibility amongst bonus receiving executives. The situations are similar, institutions are bailed out and executives contractually rip off the tax payer, Obama and Brown are silent, others rally in a bipartisan effort to stop the bonuses, only the accents are different. And on both sides of the pond the shafted tax payer waits to see what, if anything, will happen.

http://www.businessweek.com/news/2011-11-16/house-panel-backs-bill-to-block-bonuses-for-fannie-freddie.html

http://dailycaller.com/2011/11/11/fannie-freddie-bonuses-three-times-the-size-of-aig-bonuses/

http://www.scotsman.com/news/pm_to_banks_give_back_your_bonuses_1_828569