II 112th CONGRESS 2d Session S. 2054 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.

Short title

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

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)).

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).

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.

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.