Executives at Fannie and Freddie made millions of dollars as they drove those institutions into bankruptcy and a massive taxpayer bailout.
Taxpayers are on the hook for about $300 billion by 2014 to keep Fannie and Freddie afloat.
Now the folks who run Fannie and Freddie after the horse bolted the barn are having their pay limited.
The government says it will cap pay for Fannie Mae and Freddie Mac chief executives at $500,000 per year and eliminate annual bonuses for all employees. The changes come after Congress pressured the government to stop big payouts at the bailed-out mortgage giants.
The Federal Housing Finance Agency, the government agency that oversees Fannie and Freddie, also said Friday that it would cut pay for roughly 50 other executives at the two companies. Those employees are still eligible to earn salaries above the cap.
Comments
Powered by Facebook Comments