Obama’s position on Fannie Mae/Freddy Mac CEO payouts echoed in Senate
Yesterday in Ohio, Barack Obama strongly disagreed with the idea that Fannie Mae & Freddy Mac CEOs might receive huge severance packages.
The two mortgage giants are receiving a huge federal bailout in the wake of the lending crisis.
From the AFP:
Obama said that he wrote to Paulson and federal regulator James Lockhart “to make clear that it would be unacceptable for executives of these institutions to earn a windfall at a time when the US Treasury has taken unprecedented steps to rescue these companies with taxpayer resources.”
I think it’s a pretty good sound bite for him and I think it’ll resonate with people. The economy is all kinds of messed up, and people are probably shocked to find out that the CEOs of these companies might receive big severance packages while they look for ways to sacrifice to keep their houses.
And it looks like it might even turn into a bit of a coup for him. The Senate is taking up this very question today with Senate Bill 3458: A bill to prohibit golden parachute payments for former executives and directors of Fannie Mae and Freddie Mac.
The best part for Obama is that the bill was introduced by Kentucky Republican Senator Jim Bunning. So now, Obama will be seen as bipartisan, and will be able to make a claim that the Senate followed his lead.
Update: 10:42 Central Time
McCain is now making the same strong argument against the CEO payout during a speech in Fairfax, VA.
Tags: barack obama, ceo, fannie mae, freddy mac, housing, jim bunning, lending, s 3458, senate bill