Frank asks Freddie, Fannie to halt bonuses

Are we headed for another AIG bonus situation with Fannie Mae and Freddie Mac? If Representative Barney Frank has his way, we would work with the mortgage firms to stop retention bonuses from going into effect. I know the bill that was just passed to tax 90% of bonuses would apply to these companies as well, but given the questionable constitutionality of the legislation, I am not sure that it would hold up if sent to court. Retention bonuses for employees are nice incentives during good times and can be beneficial in bad times if the employees are completely indispensable. However, at some point these companies need to start determining if every member that stands to receive such a bonus actually is needed in the reorganization of the company. If they are not, then taking away the retention bonus may not be such a bad thing. I know the contracts that have been put into place call for the bonus and we shouldn't be tearing apart contracts put into place before we invested in the companies, but we do need to ensure that the company is spending its money wisely so that potentially the public can make some of its investment back when good times come back.