[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2054 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop the Outrageous Pay at Fannie 
and Freddie Act'' or the ``STOP Act''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Director.--The terms ``FHFA'' and ``Director'' mean the 
        Federal Housing Finance Agency and the Director thereof, 
        respectively.
            (2) Employee.--The term ``employee'' means an employee of 
        an enterprise, except that such term does not include any 
        employee who would be defined as a prevailing rate employee (as 
        defined in section 5342(2) of title 5, United States Code) if 
        such employee were employed by an agency (as defined in 
        paragraph (1) of such section).
            (3) Enterprise.--The term ``enterprise'' means--
                    (A) the Federal National Mortgage Association and 
                any affiliate thereof; and
                    (B) the Federal Home Loan Mortgage Corporation and 
                any affiliate thereof.
            (4) Executive officer.--The term ``executive officer'' has 
        the same meaning as is given such term in section 1303(12) of 
        the Federal Housing Enterprises Financial Safety and Soundness 
        Act of 1992 (12 U.S.C. 4502(12)).

SEC. 3. REASONABLE PAY FOR EXECUTIVE OFFICERS AND EMPLOYEES.

    (a) Suspension of Executive Compensation Packages; Adoption of 
Reasonable Pay Scale.--The Director shall--
            (1) suspend the compensation packages approved for 2011 for 
        the executive officers of each enterprise; and
            (2) establish, in consultation with the Secretary of the 
        Treasury, a compensation system for the executive officers and 
        all other employees of each enterprise in accordance with the 
        schedules of compensation and benefits established and adjusted 
        pursuant to section 1206 of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).
    (b) Cap on Pay.--Notwithstanding any other provision of law, the 
maximum rate of compensation and benefits that an executive officer or 
employee of an enterprise may receive is the rate of compensation and 
benefits of the highest compensated executive or employee of an agency 
enumerated in section 1206 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).
    (c) Clawback of Unpaid Compensation for Executive Officers.--
            (1) In general.--Each executive officer performing services 
        for an enterprise on the date of enactment of this Act whose 
        compensation package is suspended under subsection (a) shall 
        return to the Secretary of the Treasury any compensation earned 
        in 2011 or any calendar year thereafter, but not yet disbursed 
        as of the date of enactment of this Act, that was in excess of 
        the rate of compensation and benefits of the highest 
        compensated executive or employee of an agency enumerated in 
        section 1206 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 1833b).
            (2) Use to reduce national debt.--The Secretary of the 
        Treasury shall transfer amounts referred to in paragraph (1) 
        that are returned to the Secretary to the special account 
        established by section 3113(d) of title 31, United States Code 
        (relating to reducing the public debt).

SEC. 4. FANNIE AND FREDDIE EMPLOYEES NOT FEDERAL EMPLOYEES.

    Any executive officer or employee whose compensation is affected by 
any provision of this Act shall not be considered a Federal employee.

SEC. 5. REVIEW OF HIGHEST COMPENSATED EXECUTIVE OR EMPLOYEE BY 
              CONGRESS.

    The Director shall annually submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives, and shall make publicly 
available, the rate of compensation and benefits of all executives and 
employees of the enterprises, without disclosing the names or other 
personal information about such executives or employees.
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