CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--76.txt Same question to you , Mr. DeMarco , has FHFA performed any cost/benefit analysis of these compensation packages for Fannie and Freddie executives and would you be able to provide us details in writing along the lines I have discussed with Mr. Feinberg ? '' CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--61.txt And as a result now this year , we are ending up with a shortfall that we could make up if we did n't have these extraordinary ways of avoiding income . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--61.txt After 15 or 20 minutes , with great annoyance , he finally put his hand in his pocket , leaned back and said , `` Congressman why are you picking on me ? CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--41.txt I know $ 6 million is a considerable sum of money , but that amount rolls back Enterprise CEO pay to pre-2000 levels . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--41.txt Any other approach puts at risk the management of more than $ 5 trillion in mortgage credit risk that is supported by the taxpayers . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--41.txt And for all executive officers , Fannie Mae and Freddie Mac have reduced target pay by an average of 40 percent . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--37.txt Another consideration is the uncertain future of the Enterprises as continuing entities , which is in the hands of Congress and beyond the control of Enterprise executives . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--37.txt In developing a new compensation structure for senior Enterprise executives , FHFA consulted with Mr. Feinberg on how we could adapt the approach he was developing for TARP institutions to the Enterprises . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--37.txt Chairman Frank , Ranking Member Bachus , and members of the committee , thank you for the opportunity to testify on this important subject . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56776/CHRG-111hhrg56776--188.txt Mr. Garrett , '' Well , my understanding is , according to the examiner 's report , the New York Fed required no action from Lehman in response to the stress test . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--35.txt Mr. Bebchuk , '' Chairman Frank , Ranking Member Bachus , and distinguished members of the committee , thank you very much for inviting me to testify here today . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--35.txt In a recent paper , my coauthors and I did a case study of compensation at those two firms between 2000 and 2008 , and we find that this assumed effect is incorrect . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--35.txt As a result , unlike what happened with the long-term shareholders , the executive net payouts for 2000 to 2008 were decidedly positive . CongressionalHearings/Dodd-Frank/CHRG-111hhrg58044/CHRG-111hhrg58044--28.txt Chairman Gutierrez , Ranking Member Hensarling , Mr. Price , and members of the subcommittee , my name is Dave Snyder , and I am vice president and associate general counsel for the American Insurance Association . CongressionalHearings/Dodd-Frank/CHRG-111hhrg58044/CHRG-111hhrg58044--28.txt In response to your request for recommendations , we suggest that all States adopt the National Conference of Insurance Legislators ' model law . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--14.txt Just like reasonable executive compensation rules to increase financial stability should not be bipartisan , reforming Fannie and Freddie should not be either . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--14.txt I hope we can come together this time , Republicans and Democrats , to explore good policy options to deal with Fannie and Freddie later this year . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--14.txt I look forward to hearing from our witnesses and exploring issues in further detail , d I yield back the balance of my time , Mr. Chairman . '' CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--14.txt I am disappointed that some of my friends on the other side forget that when they controlled Congress for 12 years , they did not enact meaningful reform of Fannie and Freddie . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--182.txt Now , I talk to many people back in Alabama , and they say when they deal with the large banks , they say they are not interested in loaning someone $ 200,000 . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56241/CHRG-111hhrg56241--182.txt And also , the last concern , and I will close with this , and I think it is a concern we all have , as they do this trading they tend to be going back and doing what got them in trouble in the first place , and that is speculating , leveraging , and what happens , do we get right back into the problem we had ? CongressionalHearings/Dodd-Frank/CHRG-111hhrg56776/CHRG-111hhrg56776--56.txt Mr. Bernanke , '' Certainly , one possibility which my colleagues to the left know a lot about is that if you keep rates too low for too long , you get inflation . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--44.txt Mr. Alvarez , '' Chairman Frank , Ranking Member Bachus , and members of the committee , thank you for the opportunity to discuss incentive compensation practices in the financial services industry . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--47.txt And I want to mention just a couple of those unique features that neither the Federal Reserve nor Fannie Mae have to deal with , the way I have to deal with it . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--47.txt I should consider empirical data on compensation levels at various companies that are similar in kind to the companies that fall under my jurisdiction . CongressionalHearings/Dodd-Frank/CHRG-111hhrg58044/CHRG-111hhrg58044--18.txt Credit scores are really just one of a number of different data points that insurers consider when determining a consumer 's premium . CongressionalHearings/Dodd-Frank/CHRG-111hhrg58044/CHRG-111hhrg58044--143.txt Mr. Snyder , '' Well , in one sense it might force the industry to go back to larger classifications and rely more on those , such as territory and other factors which themselves were controversial . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56776/CHRG-111hhrg56776--59.txt The free market people say the dependency on regulation is just imaginary because the fault is all these mistakes being made because they have false information . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56776/CHRG-111hhrg56776--59.txt If you fix the price with interest rates , it is one-half of the economy because you are messing around with the monetary system , and then all of a sudden instead of dealing with that , we say we just need more and smarter regulations and we are going to solve all these problems . CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--103.txt Mr. Feinberg , '' We did negotiate and work out appropriate compensation at those levels , all under $ 500,000 , base cash salary , which we were comfortable with . '' CongressionalHearings/Dodd-Frank/CHRG-111hhrg56767/CHRG-111hhrg56767--75.txt I filed a bill , H.R. 857 , the Limit Executive Compensation Abuse Act , that would limit compensation for employees of TARP firms to the same level of compensation the President receives .