US finance bosses lose millions in compensation

The axed chief executives of America’s mortgage giants Fannie Mae and Freddie Mac will be barred from severance payments of up to £12m (€15.1m).

The federal government said today it will not pay the “golden parachutes” of former Fannie Mae head Daniel Mudd and former Freddie Mac boss Richard Syron.

Senator Charles Schumer said: “It would have been unconscionable to award these inflated salaries, particularly when the leadership of Fannie and Freddie can hardly be given good grades.”

Mr Mudd had been due to receive up to £4.2m (€5.3m) in compensation, while Mr Syron was due to receive up to £7.75m (€9.7m).