WASHINGTON, D.C. – President Obama today signed into law the STOCK ACT which included an amendment by Senators Jay Rockefeller (D-WV) and John McCain (R-AZ) prohibiting Fannie Mae and Freddie Mac executives from receiving future multi-million dollar bonuses as long as the government-backed mortgage companies remain in federal conservatorship. It was reported that the Federal Housing Finance Agency last year approved $12.8 million in bonuses to ten top Fannie and Freddie executives.
“It’s so important that this sensible legislation is now law,” said Senator Rockefeller. “Just a few weeks ago, the Federal Housing Finance Agency took a solid first step toward ending multi-million dollar bonuses at Fannie Mae and Freddie Mac. But we can do more, and for too long executives at these mortgage giants received excessive and unwarranted bonuses while being propped up by taxpayer money. I hear from West Virginia families every day who are still struggling to make ends meet, and it’s blatantly unfair that their money has gone to pay for these bonuses. But starting today, that can no longer happen, and we can begin to restore trust in our housing finance system.”
“This legislation ending huge multi-million dollar bonuses for high-paid Fannie Mae and Freddie Mac executives represents a good first step in finally confronting the challenge we face with these ‘government-sponsored enterprises’ (GSEs), which played a large role in causing the housing crisis in this country,” said Senator McCain. “The American taxpayer has been the victim of outright corruption and blatant abuse at the hands of Fannie Mae and Freddie Mac for decades, and it must stop. It is past time to enact fundamental GSE reform, and take Fannie and Freddie off the permanent taxpayer bailout list, returning them to the competitive marketplace before they go from ‘too big to fail’ to ‘too late to fix.’ The American people deserve no less.”