U.S. Senate puts lid on multi-million dollar bonuses of Freddie, Fannie

Washington, D.C., United States (AHN) – The United States Senate on Thursday approved a bipartisan amendment prohibiting Fannie Mae and Freddie Mac executives from receiving future multi-million dollar bonuses as long as the government-backed mortgage companies remain in federal conservatorship.

The amendment offered by Senators John McCain (R-AZ) and Jay Rockefeller (D-WV) with an impressive list of co-sponsors was approved by the Senate to prohibit millions of dollars in bonuses after it was recently reported that the Federal Housing Finance Agency approved $12.8 million in bonuses to ten top Fannie and Freddie executives.

Accusing the two of playing “a large role in causing the housing crisis in this country,” Senator McCan said, “Today’s vote in the Senate to stop high-paid executives at Fannie Mae and Freddie Mac from receiving huge multi-million dollar bonuses is a good first step in finally confronting the challenge we face with these ‘government-sponsored enterprises’ (GSEs).”

Stressing that the legislative move would “make sure the mortgage giants can’t give out excessive, million dollar bonuses while they are being propped up by taxpayer money,” Senator Jay Rockefeller said, “The American people deserve better, particularly as too many families are struggling just to get by. Fannie Mae and Freddie Mac must be more responsible with taxpayers’ money, and this legislation should help make that happen.”

Other co-sponsors of the amendment are Senators Mike Johanns (R-NE), Claire McCaskill (D-MO), John Barrasso (R-WY), Lindsey Graham (R-SC), Mike Enzi (R-WY), Tom Coburn (R-OK), John Thune (R-SD), Roy Blunt (R-MO), Lindsey Graham (R-SC), Dean Heller (R-NV), Joe Manchin (D-WV), John Hoeven (R-ND), and Sheldon Whitehouse (D-RI).

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