In our story Monday about the government’s rescue plan for Fannie Mae and Freddie Mac, we raised the question of why, once again, no conditions were required
“„Here’s a modest proposal: When taxpayers insure a giant entity against loss — as we now are with Freddie, Fannie, and Wall Street investment banks — those entities must agree that: (1) for the duration of the bailout, their top executives cannot receive total annual compensation higher than that received by the President of the United States, and 2) the government gets five percent of their current valuation as shares of stock (roughly representing the benefit to their shareholders of the federal insurance) — so that if and when the entities become profitable again, taxpayers are compensated for the risk they’ve taken on.