Canseco Statement on Committee Passage of Act to Stop Future Bonuses and Significantly Reduce Pay at Fannie, Freddie

November 15, 2011
Press Release

FOR IMMEDIATE RELEASE
November 15th, 2011

Contact:  Valentina Weis
(202) 225-4511 or Valentina.Weis@mail.house.gov


Canseco Statement on Committee Passage of Act to Stop Future Bonuses and Significantly Reduce Pay at Fannie, Freddie

Washington D.C. – Congressman Francisco "Quico" Canseco (TX-23), a member of the House Financial Services Committee, issued the following statement after the House Financial Services Committee passed on a bipartisan basis the Equity in Government Compensation Act (H.R. 1221):

"Since Fannie Mae and Freddie Mac imploded in the fall of 2008, the American taxpayer has been forced to inject over $170 billion and counting into them to keep them afloat. On November 1, it was announced that Fannie and Freddie's regulator had approved lavish, taxpayer-funded bonuses for senior executives at the two firms totaling almost $13 million. Given that the only reason Fannie and Freddie are still operating is because of taxpayer bailouts, this is completely unacceptable.

While I disapprove of government meddling in private sector compensation practices, the case of Fannie and Freddie is different. Executives at these two entities should not be paid as if they work at private corporations because the institutions that they work at are owned by the American taxpayer. It's not the business of the federal government to decide how executives are compensated when it's done with private sector capital; it is the federal government's business when it’s done courtesy of the American taxpayer."

Today the Financial Services Committee passed, on a bipartisan basis, the Equity in Government Compensation Act (H.R. 1221). This bill suspends the pay packages for senior executives of Fannie Mae and Freddie Mac, the two government-sponsored mortgage giants that were at the root of the financial crisis. It also places senior executives at these two entities on a pay scale that is similar to that of other government employees.

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