Business, Government Legal News from throughout WVU.S. Senate passes amendment banning Fannie, Freddie bonuses

An amendment to prohibit bonuses for executives of Fannie Mae and Freddie Mac has passed the U.S. Senate.

The bipartisan amendment, offered by Sens. Jay Rockefeller, D-W.Va., and John McCain, R-Ariz., would prevent the executives from receiving multi-million dollar bonuses as long as the government-supported mortgage companies remain in conservatorship. The Federal Housing Finance Agency had approved $12.8 million in bonuses to 10 top executives at both companies.

Rockefeller said he is happy to see the Senate take action on this issue.

"It's about time that the Senate passed this responsible legislation to make sure the mortgage giants can't give out excessive million-dollar bonuses while they are being propped up by taxpayer money," he said. "The American people deserve better, particularly as too many families are struggling just to get by. Fannie Mae and Freddie Mac must be more responsible with taxpayers' money, and this legislation should help make that happen."

Meanwhile, McCain pointed out that both companies have received nearly $170 billion in taxpayer-funded bailouts since they were placed in conservatorship in 2008.

"The American taxpayer has been the victim of outright corruption and blatant abuse at the hands of Fannie Mae and Freddie Mac for decades — it must stop," McCain said. "It is time to enact fundamental (government-sponsored enterprises) reform and take Fannie and Freddie off the permanent taxpayer bailout list, returning them to the competitive marketplace before they go from ‘too big to fail' to ‘too late to fix.' The American people deserve no less."

Sen. Joe Manchin, also D-W.Va., was one of many Senators to cosponsor the amendment. It was agreed to in the Senate by voice vote.