This AP story in the Sparks Tribune tells of Fed plans to “police” pay at all banks, not just those that received federal money.
Unlike a Treasury plan to slash pay at certain companies that were bailed out with large sums of taxpayer money, the Fed proposal would cover thousands of banks, including many that never received a bailout.
Now, if you like that idea, just wait until the long arm of government reaches a bit further, such as to you and me.
But, how does this mesh with an earlier story about the pay for the CFO at Freddie Mac?
The chief financial officer of government-controlled mortgage finance company, Freddie Mac’s (FRE.N), will start his new job with annual pay of up to $3.5 million and a nearly $2 million signing bonus, the company said in a regulatory filing late Thursday.
In case you don’t remember, Freddie Mac receiver more than $51 billion from the US Treasury about a year ago. Both Freddie and Fannie are major players in the secondary mortgage market and both deeply enmeshed with our foreclosure problem.
The U.S. government bailed out Freddie Mac and Fannie Mae a year ago, but both companies this month regained NYSE exchange list compliance, though their shares remain under $2 each.
Do you think they really want to control pay, or maybe that”s just for the little people that aren’t highly connected with the government?