Congress moves to end Fannie, Freddie bonuses

By The Associated Press
Posted: 6:07 pm Tue, November 15, 2011

WASHINGTON — Congress is seeking to end the practice of paying million-dollar bonuses to executives at government-controlled mortgage giants Fannie Mae and Freddie Mac.

The House Financial Services Committee approved legislation Tuesday that would suspend $12.8 million in Fannie and Freddie executive compensation packages and stop future bonuses. The vote was 52-4, with strong support from both parties.

The Senate is expected to take up a similar measure in the near future.

The government rescued Washington-based Fannie and McLean, Va.-based Freddie three years ago after they nearly folded because of big losses on risky mortgages they purchased. Taxpayers have spent about $170 billion to rescue the two firms, the most expensive bailout of the 2008 financial crisis. The government estimates the bailout could reach up to $220 billion through 2014.