Two U.S. senators introduced a measure today to cut any unpaid bonus money to executives of government-backed Fannie Mae (FNMA) and Freddie Mac (FMCC) and put employees of the mortgage-finance firms onto a federal pay scale.
Senators Mark Begich, an Alaska Democrat, and John Thune, a South Dakota Republican, introduced the measure in the wake of disclosures last year that the Federal Housing Finance Agency approved nearly $13 million in compensation for executives at the two firms. The House Financial Services Committee approved a similar bill in November.
Fannie Mae and Freddie Mac have cost U.S. taxpayers more than $150 billion in aid since 2008, when they were taken into conservatorship as they teetered on the brink of collapse after investing in risky mortgages.
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