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August 23, 2014

Watchdog: Strengthen Oversight of Fannie/Freddie Executive Pay

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Watchdog: Strengthen Oversight of Fannie/Freddie Executive Pay

The Federal Housing Finance Agency inspector general recommended strengthening oversight of senior staff pay at Fannie Mae and Freddie Mac. A report published by the housing watchdog noted that the firms paid about 90 executives a total of $92 million last year, while an additional 2,000 senior-level staffers earned about $455 million in 2011.

The FHFA took steps to rein in compensation this past year after an uproar over the multimillion-dollar pay packages for Fannie Mae and Freddie Mac's top executives. While the FHFA sets top executive officers' compensation packages in consultation with the U.S. Treasury, their pay is largely left to the two companies to determine.

Fannie Mae and Freddie Mac have soaked up almost $190 billion in taxpayer aid since the government seized them in 2008 at the height of the financial crisis. The inspector general report recommended new salary benchmarks for senior staffers in order to limit taxpayer liabilities.

"Regulator Needs to Monitor Fannie, Freddie Staff Pay: Watchdog," Reuters (Dec. 10, 2012)