ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Sunday, April 5, 2009

You can't make this stuff up

Aaa Fannie Mae and Freddie Mac, the two bailed-out federal corporations that lost a combined $110 billion last year and are getting another $200 billion from the government this year (on top of $200 billion last year), will shortly be paying out $159 million in retention bonuses.  James Lockhart, the federal overseer of the two mortgage lenders, says that the bonuses are needed to help “keep key staff.”  Echoing AIG’s justification of its own bonuses, which touched off a national firestorm, Lockhart writes:

Keeping the enterprises operating at full speed was best for the housing markets and best for the economy, which clearly also made it best for the taxpayer. And that would only be possible if we retained the Fannie Mae and Freddie Mac teams.

Lockhart has also refused to reveal the names of employees getting the top bonuses, citing "personal privacy and safety reasons."  The New York Times has a PDF of Lockhart's letter here.

[Frank Snyder]

April 5, 2009 | Permalink | TrackBack (0)

"There ain't no good guys, there ain't no bad guys . . . ."

A Okay, it's not really about contracts.  But with the various economic initiatives coming out of Washington these days, contract law and corporate law are getting jumbled together.  So you might be interested in a free conference being put on by Case Law School.  This year’s George A. Leet Business Law Symposium, presented by CW Law’s Center for Business Law and Regulation, is called “Institutional Investors and Corporate Governance: Heroes or Villains?”  It will be held Friday, April 17, 2009, from 8:45 to 3:00 p.m. CDT, at the Law School‘s Moot Courtroom. There’s a even a free lunch for those who register in advance.  Sign up here.

If you can't make your way to the Metropolis of the Western Reserve, you can watch it live on line or drop by later to see the replay.  Here's the site.

[Frank Snyder]

April 5, 2009 | Permalink | TrackBack (0)