Expect Fannie and Freddie executive compensation to become even more of a hot-button issue as more politicians take note of the contradictions of huge pay followed by a huge government bailout. From Reuters:

Democrats on Tuesday criticized the multimillion-dollar pay packages awarded to the former chief executives of Fannie Mae and Freddie Mac at a time when taxpayers could foot a massive bill for the companies' bailout.

In a joint letter to Fannie and Freddie's regulator, Senators Charles Schumer of New York and Jack Reed of Rhode Island said the combined pay and bonus packages of about $24 million should be revised.

"We find it way out of line," they said in the letter, saying the severance pay for former Fannie Mae CEO Daniel Mudd and former Freddie Mac CEO Richard Syron should be questioned especially if any financial losses could have been caused by errors in management.

The U.S. Treasury Department over the weekend seized control of the two government-sponsored entities, which together back about half the country's $12 trillion in home mortgages.