Sen. John Thune, R-S.D., (pictured left) and Sen. Mark Begich, D-Alaska, have introduced the Stop the Outrageous Pay (STOP) at Fannie Mae and Freddie Mac Act, which is designed to prevent the distribution of undisbursed bonus money and to move all Fannie Mae and Freddie Mac employees onto a structured pay scale similar to that of other federal financial regulators.
‘It is unbelievable that Congress needs to step in and end these outrageous salaries for Fannie Mae and Freddie Mac executives,’ says Thune. ‘The American taxpayers have already bailed out these agencies to the tune of over $150 billion and should not be on the hook for millions of dollars in exorbitant salaries.’
The STOP Act also requires the GSEs' regulator, the Federal Housing Finance Agency, to make Fannie Mae and Freddie Mac salary disbursements data available to Congress and the public without compromising the privacy of individual employees. The House Financial Services Committee passed similar legislation to suspend the bonuses and limit future compensation packages by a vote of 52-4 on Nov. 15, 2011.
Separately, the Senate approved an amendment yesterday that would end bonuses for the GSE executives. TheHill.com reports that the amendment, presented by Sen. Jay Rockefeller, D-W.Va., and Sen. John McCain, R-Ariz., was part of a larger bill that prohibits insider trading by members of Congress.
‘The American taxpayer has been the victim of outright corruption and blatant abuse at the hands of Fannie Mae and Freddie Mac for decades – it must stop,’ says McCain. ‘It is time to enact fundamental GSE reform, and take Fannie and Freddie off the permanent taxpayer bailout list, returning them to the competitive marketplace before they go from 'too big to fail' to 'too late to fix.'’