House Panel Votes To End Fannie, Freddie Bonuses
The House Financial Services Committee voted on Wednesday to suspend nearly $13 million in bonuses paid to executives at Fannie Mae and Freddie Mac. The measure would also prohibit future bonuses. The Senate is expected to take up similar legislation.
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Lawmakers are cracking down on the big pay packages at Fannie Mae and Freddie Mac. Yesterday, the House Financial Services Committee approved legislation that would suspend almost $13 million in executive compensation at the two housing giants, and also pay executives there more like government workers. NPR's John Ydstie has more.
JOHN YDSTIE, BYLINE: Fannie and Freddie, which are currently under government control, got the biggest bailout of any firms during the financial crisis. So far taxpayers are on the hook for more than $150 billion. But filings by the firms show that top executives at Fannie and Freddie had pay packages worth nearly $100 million in the period since 2008. The House Financial Services Committee, in a bi-partisan vote of 52 to 4, approved legislation to end the big payouts and align employee pay at the firms with government pay scales. The legislation also would stop future bonuses. The Senate is expected to take up a similar measure in the near future. But in testimony before a Senate hearing yesterday, Edward DeMarco, head of the Federal Housing Finance Agency which regulates Fannie and Freddie, defended the pay packages. He argued competitive compensation is an important factor in attracting and retaining top talent at Fannie and Freddie. John Ydstie, NPR News, Washington.
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