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McCaskill seeks end to bonuses at Fannie, Freddie

McCaskill seeks end to bonuses at Fannie, Freddie

November 18th, 2011 in News

JEFFERSON CITY, Mo. (AP) - U.S. Sen. Claire McCaskill wants to block millions of dollars in bonuses for executives at government-backed mortgage firms Fannie Mae and Freddie Mac.

The Missouri Democrat said Thursday she's joining a Senate proposal by Arizona Republican Sen. John McCain that would prohibit bonuses while the companies are under federal control.

The federal government rescued Fannie Mae and Freddie Mac three years ago when they nearly collapsed after purchasing risky mortgages. A recent report shows 12 executives at the two firms received more than $35 million in total salary and bonuses in 2009 and 2010.

This week, a U.S. House committee approved legislation to stop future bonuses and align executive salaries with those of federal employees who earn less.