II 

112TH CONGRESS 

2D SESSION S. 2054 

To suspend the current compensation packages for the senior executives 

at Fannie Mae and Freddie Mac, and to establish compensation for 

all employees of such entities in accordance with rates of pay for other 

Federal financial regulatory agencies. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2012 

Mr. BEGICH (for himself, Mr. THUNE, Mr. TESTER, Mr. BLUNT, Mrs. 

MCCASKILL, Mr. GRASSLEY, Mr. HOEVEN, Mr. BROWN of Massachusetts, Mr. BAUCUS, Mr. ENZI, Mr. JOHANNS, Mr. CASEY, Mr. MCCAIN, 

Mr. DEMINT, Mr. ROBERTS, Mr. JOHNSON of Wisconsin, Mr. BURR, Mr. 

RISCH, Mr. TOOMEY, Mr. PAUL, Mr. COBURN, and Mrs. SHAHEEN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To suspend the current compensation packages for the senior 

executives at Fannie Mae and Freddie Mac, and to establish compensation for all employees of such entities in 

accordance with rates of pay for other Federal financial 

regulatory agencies. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop the Outrageous 

5 Pay at Fannie and Freddie Act’’ or the ‘‘STOP Act’’. 


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•S 2054 IS

1 SEC. 2. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

3 (1) DIRECTOR.—The terms ‘‘FHFA’’ and ‘‘Di4 rector’’ mean the Federal Housing Finance Agency 

5 and the Director thereof, respectively. 

6 (2) EMPLOYEE.—The term ‘‘employee’’ means 

7 an employee of an enterprise, except that such term 

8 does not include any employee who would be defined 

9 as a prevailing rate employee (as defined in section 

10 5342(2) of title 5, United States Code) if such em11 ployee were employed by an agency (as defined in 

12 paragraph (1) of such section). 

13 (3) ENTERPRISE.—The term ‘‘enterprise’’ 

14 means— 

15 (A) the Federal National Mortgage Asso16 ciation and any affiliate thereof; and 

17 (B) the Federal Home Loan Mortgage 

18 Corporation and any affiliate thereof. 

19 (4) EXECUTIVE OFFICER.—The term ‘‘executive 

20 officer’’ has the same meaning as is given such term 

21 in section 1303(12) of the Federal Housing Enter22 prises Financial Safety and Soundness Act of 1992 

23 (12 U.S.C. 4502(12)). 


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1 SEC. 3. REASONABLE PAY FOR EXECUTIVE OFFICERS AND 

2 EMPLOYEES. 

3 (a) SUSPENSION OF EXECUTIVE COMPENSATION

4 PACKAGES; ADOPTION OF REASONABLE PAY SCALE.— 

5 The Director shall— 

6 (1) suspend the compensation packages ap7 proved for 2011 for the executive officers of each en8 terprise; and 

9 (2) establish, in consultation with the Secretary 

10 of the Treasury, a compensation system for the exec11 utive officers and all other employees of each enter12 prise in accordance with the schedules of compensa13 tion and benefits established and adjusted pursuant 

14 to section 1206 of the Financial Institutions Re15 form, Recovery, and Enforcement Act of 1989 (12 

16 U.S.C. 1833b). 

17 (b) CAP ON PAY.—Notwithstanding any other provi18 sion of law, the maximum rate of compensation and bene19 fits that an executive officer or employee of an enterprise 

20 may receive is the rate of compensation and benefits of 

21 the highest compensated executive or employee of an agen22 cy enumerated in section 1206 of the Financial Institu23 tions Reform, Recovery, and Enforcement Act of 1989 (12 

24 U.S.C. 1833b). 

25 (c) CLAWBACK OF UNPAID COMPENSATION FOR EX26 ECUTIVE OFFICERS.— 


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1 (1) IN GENERAL.—Each executive officer per2 forming services for an enterprise on the date of en3 actment of this Act whose compensation package is 

4 suspended under subsection (a) shall return to the 

5 Secretary of the Treasury any compensation earned 

6 in 2011 or any calendar year thereafter, but not yet 

7 disbursed as of the date of enactment of this Act, 

8 that was in excess of the rate of compensation and 

9 benefits of the highest compensated executive or em10 ployee of an agency enumerated in section 1206 of 

11 the Financial Institutions Reform, Recovery, and 

12 Enforcement Act of 1989 (12 U.S.C. 1833b). 

13 (2) USE TO REDUCE NATIONAL DEBT.—The 

14 Secretary of the Treasury shall transfer amounts re15 ferred to in paragraph (1) that are returned to the 

16 Secretary to the special account established by sec17 tion 3113(d) of title 31, United States Code (relat18 ing to reducing the public debt). 

19 SEC. 4. FANNIE AND FREDDIE EMPLOYEES NOT FEDERAL 

20 EMPLOYEES. 

21 Any executive officer or employee whose compensa22 tion is affected by any provision of this Act shall not be 

23 considered a Federal employee. 


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1 SEC. 5. REVIEW OF HIGHEST COMPENSATED EXECUTIVE 

2 OR EMPLOYEE BY CONGRESS. 

3 The Director shall annually submit to the Committee 

4 on Banking, Housing, and Urban Affairs of the Senate 

5 and the Committee on Financial Services of the House of 

6 Representatives, and shall make publicly available, the 

7 rate of compensation and benefits of all executives and 

8 employees of the enterprises, without disclosing the names 

9 or other personal information about such executives or em10 ployees. 

Æ 


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