U.S. Representative John Boozman (R-AR) today signed onto legislation preventing the outgoing executives and board members of Fannie Mae and Freddie Mac from walking away with millions of dollars in ‘golden parachute’ severance pay.
“If these executives and company officials have misled the American people with dishonest practices they need to be arrested, not rewarded.” Boozman said. “We owe it to the American people to make these officials accountable for their actions.”
H.R. 3221, Housing and Economic Recovery Act of 2008, which was signed into law on July 30th, included provisions allowing the Federal Housing Finance Agency regulator to prohibit or limit these “golden parachute” payments. H.R. 6864 requires the regulator to prohibit the payments to outgoing executives and board members.
“We can’t allow company officials to who break consumer confidence and send businesses into turmoil to benefit from bad practices,” Boozman said.
