One day after Congress suspended the compensation packages of top executives at companies that received federal bailout funds, representatives from Fannie Mae and Freddie Mac defended their high salaries. Top officials from the mortgage giants argued that their compensation packages were necessary for maintaining specialized and experienced employees in a difficult economy.
While many lawmakers and experts were shocked by Fannie Mae and Freddie Mac's audacity in face of high unemployment throughout the nation, Professor David Reiss told the International Business Times that Congress was not yet focusing on the bigger issue. "To me, it [Washington's focus on executive compensation] seems to be more of a sideshow," he said, "and Congress should be focusing more on the big show, which is how to extricate the government from its extraordinarily dominant role in the mortgage market."
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