Fannie, Freddie Bonuses Total About $210 Million

April 4, 2009:
http://online.wsj.com/article/SB123876318076986497.html

In a compensation program that has drawn angry protests from lawmakers, Fannie Mae and Freddie Mac expect to pay about $210 million in retention bonuses to 7,600 employees over 18 months, according to a letter from the mortgage companies' regulator.

The maximum retention bonus for any individual executive under the plan will total $1.5 million during the 18 months ending in early 2010, according to the letter to Iowa Republican Sen. Charles Grassley, which provides previously undisclosed details about the bonuses.

January 14, 2010:
http://whitehouse.blogs.foxnews.com/2010/01/14/obama-to-propose-90-billion-in-fees-over-ten-years-on-high-flying-us-banks-aig-on-subsidiaries-of-foreign-firms/
Significantly, the administration will exempt GM, Chrsyler, Fannie Mae and Freddie Mac from the fees even though most of the current TARP deficit is linked to taxpayer bailouts of these firms.

U.S. to Lose $400 Billion on Fannie, Freddie

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2Z5GnTAPcuo

Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to Peter Wallison, a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.

“The situation is they are losing gobs of money, up to $400 billion in mortgages,” Wallison said in a Bloomberg Television interview. The Treasury Department recognized last week that losses will be more than $400 billion when it raised its limit on federal support for the two government-sponsored enterprises, he said.

The Treasury said on Dec. 24 it would provide an unlimited amount of assistance to the companies as needed for the next three years to alleviate market concern that the government lifeline for Fannie Mae and Freddie Mac, the largest source of money for U.S. home loans, could lapse or be exhausted.

Wonderful...

About half of U.S. mortgages seen underwater by 2011

target="_blank"http://news.yahoo.com/s/nm/20090805/bs_nm/us_usa_housing_deutschebank

Home price declines will have their biggest impact on prime "conforming" loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Prime conforming loans make up two-thirds of mortgages, and are typically less risky because of stringent requirements.

Tell me that without Freddie and Fannie all this would still be happening?

Deutsche's dire assessment comes amid a bolt of evidence in recent months that point to stabilization in the U.S. housing market after three years of price drops.

It ain't over and my guess would be that this report is swept under the rug for few months until its predictions start coming true.