Report Finds Fannie & Freddie Senior Employees Are Paid Over $200,000
by Randy Neugebauer on December 11, 2012 at 5:04 PM
Perhaps one of the most egregious examples of wasteful taxpayer spending has been the bailout of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that have cost the American taxpayers over $150 billion. Now, a report by the inspector general of the Federal Housing Finance Agency (FHFA) studied the pay for 2,000 senior employees at Fannie and Freddie. The study reports that employees at the “vice president” level have median annual salaries between $205,300 and $388,000.
Last year, my subcommittee on the Financial Services Committee found that taxpayers were paying the legal expenses for top executives at Fannie and Freddie in civil lawsuits in which the executives were accused of fraud. As a result of my subcommittee’s investigation into these legal fees, the FHFA made significant changes to increase oversight of Fannie and Freddie’s expenditures and reduce taxpayer waste. Fannie and Freddie should focus on becoming less dependent on the government, rather than using taxpayer dollars to give its employees higher salaries or pay its executives’ legal fees. I will continue to fight wasteful spending, and focus on getting Fannie and Freddie off the government dole and back on its feet.