Last week, President Obama signed S.2036, the “Equity in Government Compensation Act of 2015” sponsored by Senators David Vitter (R-LA) and Elizabeth Warren (D-MA), which was modeled on Congressman Ed Royce’s (R-CA) bill that cut the salaries of the top executives at Fannie Mae and Freddie Mac.
Earlier this year, the Federal Housing Finance Agency (FHFA) overturned a 2012 rule that capped executive salaries at Fannie Mae and Freddie Mac at an extremely generous $600,000 per year. Beginning on July 1, 2015, the CEOs of Fannie and Freddie saw their salaries jump to an astonishing $4 million annually.
This drastic increase in salaries indicated that some in Washington wanted to go back to the pre-recession days of privatized gain and public losses at Fannie and Freddie. National Taxpayers Union (NTU) believes that is the wrong path to take.
We alerted our membership and they responded by telling Congress to overturn the decision. Congress and the President heard our voices loud and clear! This is a victory for taxpayers and a victory for limited government.
NTU would like to thank our members, Senators Vitter and Warren and Congressman Royce for their help in overturning these reckless salary hikes.