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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 658 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
S. RES. 658

  Expressing the sense of the Senate that the former chief executive 
   officers of Fannie Mae and Freddie Mac should not receive lavish 
                severance packages at taxpayer expense.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 12, 2008

 Mr. Nelson of Nebraska submitted the following resolution; which was 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                               RESOLUTION

 
  Expressing the sense of the Senate that the former chief executive 
   officers of Fannie Mae and Freddie Mac should not receive lavish 
                severance packages at taxpayer expense.

Whereas, on September 7, 2008, the Federal National Mortgage Association (Fannie 
        Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) were 
        placed into conservatorship by the Federal Housing Finance Agency;
Whereas the Department of the Treasury has announced that up to $200,000,000,000 
        of tax dollars will be invested in senior preferred stock of Fannie Mae 
        and Freddie Mac, with billions more lent to the companies via the 
        Government Sponsored Entity Credit Facility, and invested in mortgage 
        backed securities issued by the companies;
Whereas the Federal Housing Finance Agency, as conservator, has all the rights, 
        titles, powers, and privileges of the companies and of any stockholder, 
        officer, or director of the companies, and has been charged with the 
        duty to operate the companies;
Whereas media reports indicate that the former chief executive officers of 
        Fannie Mae and Freddie Mac may be paid severance packages worth a 
        combined $24,000,000 in pay, bonuses, and benefits;
Whereas these chief executive officers presided over Fannie Mae and Freddie Mac 
        in the time that led to a taxpayer-funded rescue and Federal takeover, 
        and should not be rewarded; and
Whereas the conservator of Fannie Mae and Freddie Mac has a duty both to the 
        stability of the financial markets, and to the best interest of the 
        American taxpayer, whose dollars are being invested in the companies: 
        Now, therefore, be it
    Resolved, That it is the sense of the Senate that--
            (1) the former chief executive officers who presided over 
        the Federal National Mortgage Association (Fannie Mae) and the 
        Federal Home Loan Mortgage Corporation (Freddie Mac) during the 
        period that led to a Federal takeover should not be rewarded 
        with lavish severance packages paid for by American taxpayers; 
        and
            (2) the severance packages of both former chief executive 
        officers should be carefully examined and eliminated or reduced 
        to an appropriate level.
                                 <all>
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