Frank Looks to Stop Fannie Mae, Freddie Mac Bonuses
House Financial Services Chairman Barney Frank (D-Mass.) on Friday sought to stop executive bonuses at mortgage giants Fannie Mae and Freddie Mac, one day after the House voted to tax at 90 percent the $165 million the American International Group gave out in employee compensation.
“I am writing to urge strongly that you rescind the retention bonus programs at Fannie Mae and Freddie Mac, prohibit any further payment of bonuses to executives under that program, and pursue repayment of any already-paid bonuses,— Frank said in a letter to Federal Housing Finance Agency Director James Lockhart.
Frank said he remains “very skeptical— about giving bonuses to people who contributed to the current economic crisis, and finds it “difficult to imagine that the companies would not be able to find competent and talented replacements— for departing executives.
The housing finance agency has “complete authority over compensation practices,— Frank’s letter concludes.