The House Financial Services Committee voted to cap the salaries for Fannie Mae and Freddie Mac Execs at $600, 000 annually on Wednesday.
The vote passed 57-1 with Representative Stephen Lynch (D-Mass) being the sole dissenting vote.
The legislation was introduced amidst fears that the Federal Housing Finance Agency, which oversees the mortgage buyers, would approve hikes in executive salaries for the banks.
Timothy Mayopoulos and Donald Layton, the CEOs of Fannie Mae and Freddie Mac respectively were slated to get a pay raise of nearly $3.5 million this month, a move that was opposed by the Obama Administration.
“Multi-million dollar paydays for the CEOs of Fannie and Freddie represent a failed grasp of reality on the part of both the GSEs and their regulator,” said Rep. Ed Royce, R-Calif., the chief sponsor of the legislation.
These salaries are still well below industry standards. In 2014 the average Wall Street CEO salary was $13 million annually.
The housing investment giants were placed under government conservatorship by the Bush Administration back in 2008 after the banks were granted more than $100 billion in emergency bailout money by Congress.[Washington Examiner][Reuters][CNN Money][NPR][Photo courtesy of ABC News]