Anyone know what the two largest financial entities in the world are? With ~$5T in liabilities, $FNMA and $FMCC
By all means, let’s make sure the folks running them aren’t even being paid anywhere near market value for their services. Maybe if Vitter and Warren get their way we can troll Taco Bell employees and see who will run them for $15/hr? Just think of the money we’d save taxpayers in salaries!!!!
So now we have the CEO of one of the largest financial institutions in the world, one that touches just about every single person in the US via the housing market being paid $600k, a small fraction of what he could earn elsewhere. i mean, Warren herself taught Law at Harvard and cleared ~$400K. So we are saying that a Law professor, who actually teaches ~5hr a week should make just under what the CEO of a sprawling financial giant should make? Really? Great plan…..would anyone here blame him if he stood up from his desk, called each of them and told them to “Go f%^k yourself” and walked out? I wouldn’t…..
This is what happens when you let government run businesses…..really stupid things…….
(Washington, D.C.) – U.S. Senators David Vitter (R-La.) and Elizabeth Warren (D-Mass.), members of the Senate Banking Committee, announced that last night the U.S. Senate passed their bipartisan legislation, S. 2036, which would cap pay raises for executives at Fannie Mae and Freddie Mac, authorized earlier this year by the Federal Housing Finance Agency (FHFA). The mortgage lenders cost the taxpayers $187.5 billion during the financial crisis.
“Giving massive taxpayer-funded pay raises to Fannie Mae and Freddie Mac isn’t just out of touch – it’s downright offensive. These two companies are wards of the state. They exist in the current form only because folks across the country paid to bail out the mortgage giants during the financial crisis. In fact, they’d still be on the hook if Fannie Mae and Freddie Mac incurred further losses,” Vitter said. “Congressman Royce’s hard work in the House built momentum to pass this important bill, and with last night’s vote, the Senate has unanimously agreed that capping these pay raises is the common-sense, responsible course of action.”
“Taxpayers paid nearly $200 billion to bail out Fannie and Freddie, the enterprises remain in federal conservatorship, and the public is still on the hook if they falter again. Rather than approving massive pay raises for Fannie’s and Freddie’s CEOs, FHFA should be working to reduce costs for homeowners and those who hope to own homes,” said Warren.
FHFA authorized new executive compensation plans for the position of Chief Executive Officer as high as $7.26 million a year. The Vitter-Warren legislation would suspend the $4 million per year compensation packages and limit their total compensation to the prior level of $600,000 a year each.
This legislation is nearly identical to a bill authored by Congressman Ed Royce (R-Calif.), H.R. 2243, which passed out of the House Committee on Financial Services in July on a nearly unanimous vote.