House Passes GSE Bonus Bill

The House of Representatives has passed a bill that prohibits financial firms and government-sponsored enterprises from receiving capital infusions from the government from paying retention or other supplemental bonuses until they repay all federal assistance. The bill, H.R. 1664, passed by a 247-171 vote. It allows performance bonus provided those bonuses are not "excessive or unreasonable" as determined by the Treasury secretary, federal banking regulators and a watchdog panel that oversees the Troubled Asset Relief Program. If passed by the Senate and signed into law, the legislation would stop retention bonus programs at Fannie Mae and Freddie Mac. "Any company bent on paying its employees unreasonable and excessive compensation can do so after the American taxpayers get their money back," said Rep. Alan Grayson, D-Fla.