Politico reports:
The Senate on Tuesday confirmed Rep. Mel Watt to be the next director of the Federal Housing Finance Agency, ending a months-long confirmation battle over President Barack Obama’s choice to oversee taxpayer-owned mortgage finance giants Fannie Mae and Freddie Mac.
The vote was 57-41, with just two Republicans, Rob Portman of Ohio and Richard Burr of North Carolina, voting in support of Watt (D-N.C.).
How clueless is Mel Watt?
Confounded Interest explains:
According to the article, On June 24, 2010, Mr. Watt asked at a Congressional conference committee: “Can somebody explain to me what’s in Tier 1 capital?” and “I just don’t have enough knowledge in this area to understand.” In December 2011 he said that, despite his Financial Services slot, “I didn’t know a damn thing about derivatives. I am still not sure I do.”
Well, if someone doesn’t understand Tier 1 capital, then they are woefully unqualified to be the regulator for two institutions that failed largely because of insufficient capital.
But why Mel Watt? He has no experience as a regulator and he is an affordable housing (low downpayment, low underwriting standards) cheerleader and legislator. While DeMarco was against principal writedowns, Watt’s camp loves principal writedowns.
Statist Elizabeth Warren claims
Watt is the right man for the job!
"Mel Watt is the right man for the job," said Sen. Elizabeth Warren, D-Mass."When it comes to housing, Congressman Watt has seen it all, and Congressman Watt has shown good judgment throughout it all."
No one can doubt that Mr. Watt thinks nothing wrong of 5% downpayments. Because big government doesn't demand collateral which can mean 20 to 1 leverage.
