Bill clears House to curb pay of CEOs of Fannie, Freddie
WASHINGTON (AP) — Legislation that has cleared the House would curb the pay of the CEOs of government-controlled mortgage giants Fannie Mae and Freddie Mac, overriding regulators' approval of nearly $4 million yearly pay packages for each.
The House passed the bill by voice vote Monday. It would cap the total compensation of the Fannie and Freddie CEOs to $600,000 a year each — the level at which it was previously held by the regulators.
The government rescued the two companies with a $170 billion taxpayer bailout at the height of the financial crisis in September 2008, as they veered toward collapse under the weight of losses on risky mortgages. It was one of the largest government bailouts of the crisis.