Freezing Fannie Mae & Freddie Mac Salaries
Telling a group of workers that they get no more money in any manner, particularly if they came on to help fix things after a company’s problems surfaced, is often a challenging task. Apparently that is what is happening at…
Telling a group of workers that they get no more money in any manner, particularly if they came on to help fix things after a company’s problems surfaced, is often a challenging task. Apparently that is what is happening at Fannie Mae and Freddie Mac.
No one in the public will care. In fact, most will likely cheer. The Federal Housing Finance Agency is instructing for a second year (according to Bloomberg) of no increase in wages nor in cost of living adjustments at the agency.
As we have noted before, Fannie Mae and Freddie Mac may have taxpayers on the hook for over $150 billion and may be a black hole in the trillions ultimately. Just remember that if you are a homeowner with a conforming mortgage, you have a cheaper mortgage because of them. Still, the banks mostly paid Uncle Sam and the taxpayer back… The answer for Fannie Mae and Freddie Mac has not yet surfaced.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
