Republican Description of Bill is Inaccurate
In justifying Republican opposition to the bill that would have limited compensation at Fannie Mae and Freddie Mac, House Financial Services Committee Ranking Member Spencer Bachus today issued a statement where he incorrectly stated that the bill he voted against, H.R. 1664, would have “unfairly penalized small community banks with responsible compensation arrangements that had nothing to do with the excesses on Wall Street.”
This is not true.
The bill clearly states that:
(6) COMMUNITY FINANCIAL INSTITUTION EXEMPTION-
(A) IN GENERAL- The Secretary may exempt community financial institutions from any of the requirements of this subsection, when the Secretary finds that such an exemption is consistent with the purposes of this subsection.
(B) COMMUNITY FINANCIAL INSTITUTION DEFINED- For the purposes of this paragraph, the term `community financial institution' means a financial institution that receives or received a direct capital investment under the Troubled Asset Relief Program under this title of not more than $250,000,000.