U.S. Senators Introduce Bill to Cap Fannie Mae, Freddie Mac Pay

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.

To contact the reporter on this story: Phil Mattingly in Washington at pmattingly@bloomberg.net

To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net