WASHINGTON (9/21/15)--By unanimous consent Tuesday, the U.S. Senate passed a bill that would cap executive pay at Fannie Mae and Freddie Mac.
The bill, introduced by Sens. David Vitter (R-La.), and Elizabeth Warren (D-Mass.), was sparked by an announcement by the director of the Federal Housing Finance Agency that the executives would receive a hefty pay increase.
FHFA Director Mel Watts said this summer that the chief executives of Fannie and Freddie would be paid $4 million each, up from $600,000.
The Vitter-Warren bill would block that pay increase and install a statutory cap at $600,000. The legislation now moves to the House, where there is already some sentiment in favor of the cap: The House Financial Services Committee passed a similar bill in late July.