U.S. Senators John McCain (R-AZ) and Jay Rockefeller (D-WV) this week announced their intention to offer an 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. It was recently reported that the Federal Housing Finance Agency approved $12.79 million in bonuses to ten top Fannie and Freddie executives. The senators will offer their amendment as soon as a suitable legislative vehicle is on the Senate floor.
"It's outrageous that Fannie Mae and Freddie Mac executives would expect multi-million dollar bonuses after $170 billion in taxpayer bailouts and one in every four homeowners' mortgage underwater," said Senator John McCain. "This amendment makes clear that so long as Fannie and Freddie are in government conservatorship, bonuses such as these will not be paid out. President Obama has previously opposed huge bonuses for Fannie and Freddie executives and denounced such windfalls for leaders of companies bailed out by taxpayers as an "outrage' and a violation of "our fundamental values.' We hope the Administration will live up to its rhetoric and join our effort to stop these absurd and outrageous bonuses."
"It's inexcusable that anyone would think it's okay to hand out these bonuses," said Senator Jay Rockefeller. "The American people deserve better and it's time we make sure that Fannie Mae and Freddie Mac act more responsibly with their money. Families throughout the country and West Virginia are still struggling to pay their bills and many face foreclosure. Their money shouldn't support executive bonuses at organizations that have already received billions of taxpayer dollars. This is unacceptable and must change immediately."
Additional cosponsors at this time are Senators Mike Johanns (R-NE), Claire McCaskill (D-MO), John Barrasso (R-WY), Mark Begich (D-AK), Mike Enzi (R-WY), Lisa Murkowski (R-AK) and John Thune (R-SD).