House panel votes to end Fannie bonuses, cut pay

Executives at the bailed-out mortgage companies Fannie Mae and Freddie Mac will lose future bonuses and take a pay cut under a bill passed by the House Financial Services Committee.

By a 52 to 4 margin, the committee voted to end multi-million dollar salaries and bonuses given to executives by companies so dependent on taxpayer support. “These lavish compensation packages and bonuses are unfair, unreasonable and unjust to the taxpayers whose assistance is the only thing keeping Fannie and Freddie afloat,” said Rep. Spencer Bachus, R-Ala.