A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government seized mortgage giants Fannie Mae and Freddie Mac that received a $170 billion taxpayer funded bailout.
Sen. Spencer Bachus said “Fannie Mae and Freddie Mac have received about $141 billion in taxpayer funds since the government took them over in 2008 during the financial crisis. Sen. Spencer Bachus, is pushing a bill to suspend pay packages at Fannie and Freddie and require executives and employees of government sponsored enterprises to be paid according to the federal pay scale.
Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter. Freddie Mac said that it lost $4.4 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010.
Taxpayers spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. U.S. government estimates it could cost up to $51 billion more to support the companies through 2014.
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