Rep. Frank Presses GSE Regulator to Stop Bonuses

House Financial Services Committee chairman Barney Frank, D-Mass., is pushing the nation's GSE regulator to stop approving retention bonuses for Fannie Mae and Freddie Mac executives and to recoup past bonuses. In a letter to Federal Housing Finance Agency director James Lockhart, the powerful committee chairman stressed that the companies being propped up with public funds should not be paying large bonuses. "I am writing to urge strongly that you rescind the retention bonus programs at Fannie Mae and Freddie Mac, prohibit any further payment of bonuses to executives under that program, and pursue repayment of any already-paid bonuses," Rep. Frank says in a March 19 letter. A FHFA spokeswoman said the director will respond to chairman Frank's letter soon. Chairman Frank has drafted a bill that prohibits companies receiving TARP funds and Fannie and Freddie from paying bonuses until they repay all federal assistance. The Financial Services Committee is scheduled to markup the bill on Wednesday (March 25).