U.S. Representative Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, released the following statement in reaction to third quarter losses reported by Freddie Mac earlier today:
“Losses like this combined with multimillion dollar CEO salaries at the GSEs are the warning shots of a return to the pre-crisis model of private gains and public losses that wrecked the economy. We can’t simply put the blinders on and say that Fannie and Freddie are just like other companies when taxpayers are on the hook if they go in the red.”
Rep. Royce introduced the Equity in Government Compensation Act of 2015 on May 8, 2015, and it passed out of the House Financial Services Committee by a 57-1 vote on July 29, 2015. Rep. Royce’s bill suspends the recently announced $4 million a year compensation packages for the CEOs at Fannie Mae and Freddie Mac and limits their total compensation to the prior level of $600,000 a year each.
The House is tentatively scheduled to vote on such legislation that has already passed the Senate during the week of November 16, and the President is anticipated to sign the bill into law shortly thereafter.
Source:: U.S. Rep. Ed Royce