Following recent reports that nearly $13 million in bonuses were approved for ten top executives at federal housing agencies Fannie Mae and Freddie Mac, U.S. Senator Claire McCaskill is teaming up with Senator John McCain (R-Ariz.) on a measure to prohibit such bonuses as long as the agencies remain in federal control.
Following the 2008 housing crash, the United States Treasury placed Fannie Mae and Freddie Mac into conservatorship in order to stabilize the housing market from further losses. While the market remains in a slow recovery, top executives at the agencies recently received millions of dollars in bonuses.
McCaskill is joining with McCain and other Senators from both sides of the aisle on an amendment to prohibit such bonuses.
“The very notion that executives at these housing agencies are getting multi-million dollar bonuses is outrageous,” McCaskill said. “They are completely out of touch and we need to bring this excessive pay and these bonuses to a screeching halt.”
In 2008, McCaskill introduced a measure that would have forced companies taking federal bailout money to limit compensation for any employee to $400,000 per year. The compensation cap, coming after reports that Wall Street executives had received more than $18 billion in bonuses, would have covered salary, bonuses and stock options.
McCaskill also fought to ensure that federal regulators would be held accountable for failure to ensure proper supervision. An amendment by McCaskill to the Wall Street reform bill, which passed with an overwhelming majority, created a council of Inspectors General to oversee financial institutions. The amendment specifically facilitates better oversight of regulatory agencies by requiring quarterly meetings of agency watch dogs to improve coordination and communication between them.
