[Congressional Record Volume 154, Number 145 (Friday, September 12, 2008)]
[Senate]
[Page S8498]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SENATE RESOLUTION 658--EXPRESSING THE SENSE OF THE SENATE THAT THE 
FORMER CHIEF EXECUTIVE OFFICERS OF FANNIE MAE SHOULD NOT RECEIVE LAVISH 
                 SEVERANCE PACKAGES AT TAXPAYER EXPENSE

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

                              S. Res. 658

       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.

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