Measure to Ban GSE Bonuses Moves Forward in the Senate

A Senate bill that would bar members of Congress from trading on confidential information was amended Thursday to include a ban on paying bonuses to executives at Fannie Mae and Freddie Mac.

The amendment, sponsored by Republican Sen. John McCain and Democratic Sen. Jay Rockefeller, would prohibit the payment of bonuses to executives at the two mortgage giants while they remain in government conservatorship.

Also approved Thursday was an amendment that would require lawmakers to disclose publicly the terms of their mortgages.

That proposal, sponsored by Democratic Sen. Barbara Boxer and Republican Sen. Johnny Isakson, was a response to the revelations that some members of Congress received Countrywide mortgages under favorable terms as part of the firm’s VIP program.

The Senate is expected to pass the underlying legislation, known as the Stop Trading on Congressional Knowledge Act, or the STOCK Act.

House Majority Leader Eric Cantor has said recently that he plans to hold a vote soon on a House version of the bill.

Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_530/ban-gse-bonuses-senate-1028694-1.html

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