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Foxx co-sponsors legislation to ban Freddie/Fannie "golden parachutes"
Washington, DC,
September 12, 2008
Congresswoman Virginia Foxx has co-sponsored legislation (H.R. 6468) to stop executives at Freddie Mac and Fannie Mae from receiving extravagant "golden parachute" severance packages. Executives ousted in the wake of the federal gove
Contact: Aaron Groen Slams taxpayer-funded bailout of massive executive severance packages at lending giants Congresswoman Virginia Foxx has co-sponsored legislation (H.R. 6468) to stop executives at Freddie Mac and Fannie Mae from receiving extravagant “golden parachute” severance packages. Executives ousted in the wake of the federal government takeover of Freddie Mac and Fannie Mae could take home more than $14 million and $9 million respectively in severance packages, according to media reports. “Don’t we pay CEO’s for successfully managing companies, not running them into the ground?” Rep. Foxx said. “Taxpayers are already on the hook for bailing out these massive lenders. They should not be forced to bail out fat cat executives who are receiving outrageous payouts for their failed leadership.” The legislation, introduced in Congress this week, amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to specifically prohibit massive severance packages for executives at Freddie Mac and Fannie Mae. It would prevent the sort of multi-million dollar golden parachutes that departing CEOs at the two lenders are being currently offered. “American taxpayers have been already exposed to billions in risk and liability with the takeover of Freddie Mac and Fannie Mae,” Foxx said. “Thanks to poor business decisions these two lenders need to be rescued. It is simply reckless to reward this kind of leadership with million-dollar payouts.” Note: Congress passed a so-called “housing bailout” bill in July. Despite warnings that the housing bailout bill (H.R. 3221) amounted to “private profit, public risk”, the flawed and rushed bill failed to protect taxpayers against having to finance these exorbitant and unnecessary executive payments. In fact, H.R. 3221 was so rushed that the 694-page text was not made available to lawmakers until 6:30 pm the night before it was voted on. All told, the bill was made available for review just 16 hours prior to its consideration in the House, was allotted just two hours of debate time, and was not open to amendment. The consequences of this hasty consideration of the most sweeping changes to housing law in a generation are now starting to become obvious. |
