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Walberg Questions Government Regulator, Fannie & Freddie CEOs On Bonuses

January 25, 2013

Today, the House Committee on Oversight and Government Reform examined the extravagant bonuses given to top executives at Fannie Mae and Freddie Mac. The hearing entitled, “Pay for Performance: Should Fannie Mae and Freddie Mac Executives Be Receiving Millions in Bonuses?” questioned Fannie and Freddie’s CEO’s concerning this issue.

Congressman Tim Walberg attended the hearing and questioned Mr. Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency, about what “benchmarks” Fannie and Freddie are meeting that would allow such large bonuses to kick into place, especially in light of taxpayer losses of approximately $170 billion.

Congressman Walberg also asked the CEO of Freddie Mac, Mr. Charles E. “Ed” Haldeman Jr, if compensation had anything to do with his leaving the company this year. Mr. Michael J. Williams, President and CEO of Fannie Mae, was questioned about what he would do if the FHFA decided to curtail his pay. Both men responded that money would not affect their decisions.

“As even more mortgages fail in the U.S., financial losses continue to mount up at Fannie and Freddie. Yet in spite of these losses, their top executives continue to take home millions of dollars in bonuses each year. Clearly, the Administration is not serious about monitoring these executive compensation packages, instead choosing to look the other way while it risks more taxpayer dollars with these enterprises. It is simply unacceptable behavior,” commented Congressman Tim Walberg following the hearing.