The Great Debate
The U.S. Senate should move quickly to confirm Mel Watt as the new head of the Federal Housing Finance Agency (FHFA), but not for any of the political or procedural reasons usually discussed. A quick confirmation is required because we need new leadership on U.S. housing policy — a policy that on some crucial points is headed in the wrong direction for the wrong reasons.
We shouldn’t have to sue to get Fannie Mae and Freddie Mac to follow their congressional mandate and put some of the billions they are generating into affordable housing for the millions of families who need it. But that’s what is has come to for housing advocates, who are frustrated that the Federal Housing Finance Agency (FHFA) is still refusing to fund the National Housing Trust Fund.
Last week, I spotlighted three ominous trends in consumer banking. The last one spotlighted a brewing war “between the private bank sector and the government over who exactly controls the allocation of consumer credit in this country.”
from Stories I’d like to see:
1. Crash Winners
Here’s a new entry for the lists of winners and losers that get published this time of year: The ten lawyers, bankers, consultants or accountants who reaped the most from the financial disaster of the last three years.
By Jack Abramoff
The opinions expressed are his own.
Last week, Republican presidential candidate Newt Gingrich romanced the Tea Party activists, who demand that the corrupt swamp of Washington be drained. His intrepid spokesman, R.C. Hammond, had a more arduous task: convincing the world that the former Speaker was not swimming in that same swamp. As facts emerged revealing that Gingrich took almost $2 million in “consulting” fees from the beleaguered Freddie Mac, Hammond delivered proof that the Gingrich operation was master of the inside-the-Washington-beltway game. Spinning Gingrich’s perfidious (yet legal) trip through the infamous revolving door to post public service riches, Hammond posited that taking millions in consulting fees was actually a positive: since Newt now understood “why the system is broken,” he now knew “how it could be fixed.” In other words, now that he had participated in legal corruption, he was more qualified to be our President.
By Maureen Tkacik
The opinions expressed are her own.
Also read part one of this series, How Ed DeMarco finally cried fraud.
A big clue something had become dysfunctional at Fannie Mae and Freddie Mac came in the first week of 2011, when the government mortgage market makers announced the terms of a settlement agreement they’d reached with Bank of America, and were immediately pilloried for extending the bank another “backdoor bailout” by the likes of Maxine Waters and the American Enterprise Institute.