Hoeven Cosponsors, Senate Passes Amendment to End Fannie Mae, Freddie Mac Executive Bonuses
WASHINGTON – Senator John Hoeven cosponsored an amendment to ensure better stewardship of taxpayer dollars and prohibit bonuses for Fannie Mae and Freddie Mac executives. The Senate approved the amendment, which was introduced by Senator John McCain, by voice vote late Thursday.
Hoeven has been working to stop the Federal Housing Finance Agency (FHFA) from issuing bonuses to senior executives, in light of a November report that found the agency had approved more than $12 million in bonus pay for 10 Fannie Mae and Freddie Mac executives.
“Fannie Mae and Freddie Mac have received nearly $141 billion in taxpayer-provided bailout funding, and it’s completely unacceptable for them to turn around and award their executives millions of dollars in bonuses,” said Hoeven. “This legislation will prevent this practice and ensure that Fannie Mae and Freddie Mac are better stewards of taxpayer dollars.”
In November, Hoeven joined a bipartisan group of senators, in writing to FHFA Acting Director Edward Demarco to press for changes to the agency’s compensation policies. In the letter, the senators urged the agency to make substantial changes to its executive compensation policies to more accurately reflect the public mission of the FHFA and the fiscal realities facing the federal government.Hoeven is also sponsoring the Stop the Outrageous Pay (STOP) at Fannie Mae and Freddie Mac Act. This legislation prevents the distribution of undisbursed bonus money and also moves all Fannie Mae and Freddie Mac employees onto a structured pay scale similar to that of other federal financial regulators.
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