Now Fannie Announces Bonuses

Under the category of "Some People Never Learn," both Freddie Mac and Fannie Mae are reportedly planning on paying huge bonuses to key executives this year in order to retain their services.

The Associated Press is reported that Fannie Mae will pay $611,000 to Michael Williams, chief operating officer and executive vice president, as a retention award in addition to his $676,000 base salary.  Fannie's deputy chief financial officer David Hisey will get $517,000 on top of his $385,000 salary and a $160,000 cash bonus.

The bonuses were disclosed in a filing with the Securities and Exchange Commission and are more than double the ones given last year which ranged from $200,000 to $260,000.

The awards were approved by federal regulators including James Lockhart, Chairman of the Federal Housing Finance Agency which oversees the receivership of the two government sponsored enterprises.

Freddie Mac is reportedly also planning bonuses but has not yet revealed which executives will be receiving them or the amount.

Fannie Mae's two top executives, Chief Executive Officer Herbert Allison and Chief Financial Officer David Johnson, did not receive the awards because they joined the company only last year.  Allison is working without salary.