Monday, September 08, 2008

Syrin and Mudd ... are rewarded for this??

...thankful, in one respect, I don't own more than a marginal amount of Fannie/Freddie stock in the mutual funds...

...but boy, it sure worked out for Syrin and Mudd who will each exit with ~$15+ million each. We, the taxpayers, ultimately are paying that bill of course. ..$14 BILLION in losses the last 4 quarters... and it's far from over, as Paulson commits $200B from the Federal coffers to assuage the country's fears.

"As early as 2005, Fannie executives publicly expressed concerns about growing risks in the mortgage market In May of that year, Thomas Lund, a Fannie Mae executive vp, said that lenders should be concerned if borrowers straining to afford homes were given loans allowing for low payments in the early years but storing up much higher ones for later"

"$5 trillion of debt and mortgage-backed securities issued by Fannie and Freddie is owned by central banks and other investors world-wide."

While I mind chipping in to pick up the $200B with my N% in taxes, obviously we have no choice ... what I really mind, is these two "leaders" walking out of this with $15M cash after steering the ship into a glacial iceberg. Absolutely insulting, money out of our pocket, while the guilty gets rewarded with a golden parachute of 7 figures.

Where have all the leaders gone??



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