The House Oversight Committee held a hearing on executive compensation at the federally-backed housing finance companies Fannie Mae and Freddie Mac. Fannie Mae CEO Michael Williams and Freddie Mac CEO Charles "Ed" Haldeman testified.
The witness list also included Acting Director of the Federal Housing Finance Agency Edward DeMarco, who approved over $12 million in bonuses for government backed Fannie & Freddie.
Yesterday, the House Financial Services Committee voted to block over $12 million in executive bonuses at the two mortgage companies. The bonuses were approved by the Federal Housing Finance Agency, which said it was necessary to keep experienced executives at the companies.
Risky mortgages threatened Fannie and Freddie in 2008, forcing the federal government to pump $170 billion into the companies.