Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., says enough is enough when it comes to taxpayers bailing out failed businesses and he signed onto a bill today to ensure taxpayers won’t also have to pick up the tab for multi-million dollar severance packages for former Freddie Mae and Fannie Mac executives.
“The American taxpayer should not be in the business of writing checks for golden parachute packages to failed executives. This bill ensures that won’t happen and protects taxpayers,” said Enzi.
Enzi co-sponsored S. 3458, a bill to prohibit former executives and directors of Fannie Mae and Freddie Mac from receiving multi-million dollar severance packages. The executives of the two government-sponsored housing entities were replaced this weekend when the federal government entered into a conservatorship with the financial institutions.
The bill would amend the recently-passed housing stimulus package to require the Federal Housing Finance Agency (FHFA) to stop executives from the government-sponsored enterprises from receiving exorbitant severance packages. The U.S. Treasury Department and the FHFA, as part of their conservatorship duties, are looking into the compensation packages for the Freddie and Fannie executives but have not made a decision about decreasing them. The recently introduced bill, S. 3458, will ensure taxpayers play no part in multi-million dollar compensation packages.
According to estimates, the severance packages could be worth as much as $14.9 million for the former CEO of Freddie Mac and as much as $9.8 million for the former CEO of Fannie Mae.