In today's column I explain how Fannie Mae and Freddie Mac have been asked to do two completely incompatible things: help subsidize the housing market and make profits for shareholders. Top management is compensated on the latter goal: higher profits meant higher share prices, more compensation for top management. Unfortunately, they got those higher profits by guaranteeing questionable loans! Now what???
August 2008 Archives
Terry Savage
Terry Savage writes a syndicated personal finance column for the Chicago Sun-Times and for TheStreet.com. Her latest book is "The Savage Number: How Much Money Do You Need to Retire?" Read more at TerrySavage.com.
