Walberg, King Introduce Bill to Keep Fannie and Freddie Executives from Receiving Golden Parachute Severance Packages

Press Release

Walberg, King Introduce Bill To Keep Fannie and Freddie Executives From Receiving Golden Parachute Severance Packages

U.S. Congressman Tim Walberg (R-MI) and Congressman Steve King (R-IA) today introduced legislation to prevent the former executives and directors of Fannie Mae and Freddie Mac from receiving Golden Parachute severance pay. The executives were removed from their positions due to poor management this past weekend, when the U.S. Treasury Department took control of the two government-sponsored entities.

According to recent news reports, Daniel Mudd, the former CEO of Fannie Mae, "could receive more than $9 million in combined severance pay" and former Freddie Mac CEO Richard Syron "may collect as much as $14.1 million"

"Taxpayers are already being forced to pay for the mistakes of the scandal-ridden Fannie Mae and Freddie Mac lending institutions, and the last thing we need to do is reward the individuals who oversaw the corruption and failure of these institutions," said Walberg, "As any student in a basic accounting course could tell you, these CEO's have egregiously mismanaged Fannie Mae and Freddie Mac and used Enron-like accounting techniques to make earnings look billions larger than they actually were. Taxpayers should not reward these failed managers for their mistakes."

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