WASHINGTON — Senate Banking Committee Chairman Tim Johnson announced Thursday that he plans to hold a hearing on bonuses paid to executives at Fannie Mae and Freddie Mac.
Johnson appeared concerned about reports that 10 executives at the two government-sponsored enterprises would receive bonuses of more than $12 million. The South Dakota Democrat said he would call Ed DeMarco, the acting director of the Federal Housing Finance Agency, to testify about the bonuses "as soon as possible."
"As conservator of Fannie Mae and Freddie Mac, FHFA, under Mr. DeMarco's leadership, is responsible for approving compensation and maintaining adequate internal controls to oversee the day-to-day operations at Fannie Mae and Freddie Mac," Johnson said. "This committee, the Congress and taxpayers need to be confident that those controls are in place and the conservator is upholding its responsibilities."
Sen. Richard Shelby, the lead Republican on the panel, agreed that the committee should hear from DeMarco, but suggested Johnson also ask officials at the Treasury Department to testify.
"We need them both here to have a proper and thorough hearing, so we need them both here at the same time," Shelby said. "I don't know how you can have a good hearing without doing both."
