Speaking of Freddie Mac... Bye-bye bonuses

The House Financial Services Committee, apparently undisposed to taste the torches and pitchforks of an irate mob, voted yesterday to cancel the gigantic bonuses scheduled to be paid out to executives at Fannie Mae and Freddie Mac. They also voted to suspend any future bonuses.

The decision will revoke a planned $5.6 million bonus to Fannie Mae's CEO, and $5.4 million to the CEO of Freddie Mac.

A release from the committee states:

Since their bailout Fannie and Freddie have received $170 billion in taxpayer dollars. While the GSEs have continued to report losses and receive additional bailout money, the executives of the companies have received millions in compensation and bonuses. On Christmas Eve 2009, Treasury and FHFA ratified $42 million worth of Wall Street-style pay packages for the GSEs’ 12 top executives.  In 2010, FHFA approved similar pay packages.  According to its SEC 10-K filings, Fannie Mae paid its top six executives $15.4 million in salaries and bonuses.  Fannie Mae CEO Michael Williams earned $5.6 million.  Freddie Mac paid its top five executives nearly $18.5 million.  Freddie Mac CEO Charles E. Haldeman, Jr. was paid $5.4 million. Earlier this month it was revealed that Fannie and Freddie would award $12.8 million in bonuses to the top executives.

“Today the Committee approved a bill to stop rewarding the executives of these bailed out companies. Never again should Americans be forced to send their hard earned tax dollars to be wasted on multi-million dollar pay packages for Fannie and Freddie executives,”

The Financial Services Committee vote was 52-4. It might be interesting to look into who those four were who voted against it, and why.