However, although more economically-cohesive than the Democratic Party, the Republican Party is not monolithic, and there's perhaps no better example of these often nuanced differences in policy than the positions on home mortgage assistance policy held by U.S. Treasury Secretary Henry Paulson, and FDIC Chairman Sheila Bair.
Paulson has been slow on payment relief
Although he has shown support for mortgage refinance programs aimed at achieving lower payments - - 'payment relief' in Washingtonspeak - - Paulson has steered clear of policies that would mandate that banks unilaterally lower principals, or interest rates, preferring to stick with a voluntary approach, whereby banks basically negotiate with borrowers on a case-by-case basis.
That traditional Republican response, economist David H. Wang said, "has prevented mortgage refinancings from occurring for those who don't truly need them," but it also has increased the at-risk mortgage pool, delaying the housing sector's recovery.
A solution to the above, in Wang's view? Adopt the FDIC plan backed by Bair, whereby the Treasury would use its funds to speed refinancings for at-risk homeowners in owner-occupied homes. Wang agreed with Bair that the FDIC plan could prevent 1.5 million foreclosures by the end of 2009.
"It could prevent even more, perhaps as many as 1.8-2 million foreclosures, and until the U.S. ends these waves of foreclosures, very little good news will occur from a GDP standpoint, which is why Bair's plan should be enacted," Wang said. "I also think President-elect Obama should appoint her to a Special Advisor post in the Obama Administration, solving the home foreclosure problem is that critical to the nation's economic health."
Bair, whose five-year FDIC chairmanship ends in June 2011, "would fit-in well with President-elect Obama's goal of a bipartisan cabinet and expert advisor circle," so says economist Richard Felson.
"She clearly has an Obama-esque view of policy, whereas Paulson has a more traditional outlook, and she was well ahead of the pack regarding the problem presented by subprime loans, so Obama would be wise to include her as a key member of his housing team," Felson said. "She's done the math and knows that there are no cost-free solutions to housing sector stabilization."
Housing Sector / Economic Analysis: As the great Washington lobbyist and political operative Martin Dunleavy once said, "There's nothing more delightful than a Republican who occasionally acts like a Democrat, and vice-versa." FDIC's Bair is in that mold, so President-elect Obama should put her in his inner circle, pronto.
Reader Comments (Page 1 of 1)
11-18-2008 @ 5:45PM
Don Gonsalves said...
There is a hell of a lot of difference between what Bair is doing versus what Paulson is doing. Paulson expects to get the money back plus interest. His money is going out as an investment or a loan His money should be considered as an asset on the balace sheet and shoul dnot increase the deficit. On the other hand the money Bair wants wil be a loss pure and simple and will add to the deficit. I have no ax to grind as I am not a Democrat or a Republican however aid to homeowners should be strickly provided to those that deserve it such as those sucked into predatory loans,those that have lost their job,those that have huge medical bills etc.As a taxpayer I woul dlik eto know who gave Bair the autority to do what she is presently doing with Indy/Mac.She is suppose to be maximizing the return to the taxpayers when the FDIC takes over which she is not doing. Someone shoul dinvestigate this situation
11-18-2008 @ 5:58PM
David Huston said...
Sure; once the President-Elect exhausts all of the qualified Democrats for consideration for important leadership roles, he could turn to Ms. Bair. Remember, folks, SHE'S A REPUBLICAN!
11-18-2008 @ 6:45PM
Peter Goddard said...
No! Whistling in the wind!
11-18-2008 @ 7:51PM
Mike Sanders said...
I just got done listening to on-the-air comments from Ted Nugent (Live from Michigan). This man has some really good ideas, even concerning the mortgage crisis and building a better America. I feel that Obama should choose someone like Uncle Ted to head up one of his departments. This would add balance to his administration and help to cement the nation together.
11-18-2008 @ 8:21PM
Lori said...
Blair belongs in jail she took /stole/robbed WaMu stock holders and bonds holders of billions overnight, drained 401's and ripped the heart out of retired investors She can hang I hope we get a big enough class action suit to skin this bitch
11-19-2008 @ 9:55AM
lou said...
I agree with lori and Don. She is dirty. I would be very careful which Repubs I used if I was President-elect Obama. I just read "Famous Financial Felons" on this server and under the Felon Abramoff story: His career serves as a kind of summary of all that is wrong with the Republican right -- Bill Moyers calls the "reptilian right" that seeks power though ideological purity but only for the purpose of self-enrichment. Sounds a lot like Blair.
12-31-2008 @ 1:31AM
Yolanda Gibson-Michaels said...
FDIC Whistleblower Wayne G. Frena
1. Jan-Feb 1992 Washington Monthly Reporter Christopher Georges exposed the Office of Thrift Supervision (OTS) Whistlblower Wayne Frena reports of fraud at the OTS and the FDIC. First Gibraltar reportedly received billions of dollars in federal relief money, but examiners say that its CEO has siphoned off bank funds for personal use. See Bluebonnet Savings in Dallas and El Paso Savings and Loan.
FDIC Whistleblowers Alfred Beltran-Romero and Rick Benavidez
2. In the case of El Paso Savings, two examiners Alfred Beltran-Romero and Rick Benavidez reported fraud at the Office of Thrift Supervision (OTS) and FDIC and ordered to stop investigating the S&L even though they had uncovered evidence of fraud. OTS Bank examiners uncovered squandered funds on private jets.
Reporter Christopher Georges wrote: “The CEO of a multibillion-dollar Dallas S&L dips into the thrift's petty cash for a few personal perks. There's the $700,000 or so spent on the lavish private hunting lodge in South Texas. A plush New York City penthouse condo costing the thrift more than $7,000 a month; and a leased private jet. $13,000 dinner for four; a ritzy suite at Dallas's only five-star hotel where guests are routinely treated to Dom Perignon and Beluga. The thrift received $5 billion in federal money and a wealth of other goodies, including guarantees of $600 million in tax benefits and a promise to cover losses from the thrift's bad loans until 1998.” "People were told not to upset the Southwest babies," said one OTS examiner. "It would look bad for us."
FDIC Whistleblower Kurt Brown
3. January 1, 2006, Kurt Brown-- Saint Ram Bone (Whistleblower) former FDIC Bank examiner/auditor confirmed he observed a corrupt organization stemming from certain members in the West Coast FDIC with links to Washington D.C., Kurt reported that the past regional director in San Francisco was found dead in his office in the early 1990's and it was labeled suicide. Kurt said Veteran’s personal information and Federal Bank Examiner information are being stolen; paid into credit card accounts in AT&T Universal Card/Citibank. See also Jacqueline P. Taylor v. FDIC, No. 96-5267 (U.S. Appeal Court) reported FDIC outside counsel contract fraud. Richard Dunn v. FDIC, 94-cv-1916.
FDIC Whistleblower Jud Witham
4. Jud Witham wrote:”JAMES WRIGHT the SENIOR FDIC Lawyer in Houston THREATENED a STAFF LIAR with FDIC to bring our settlement papers to him in 5 minutes or the little Bastards would be looking for a JOB !!
James Wright explained to ME IN PERSON across his desk he "wanted to do something RIGHT before he retired" as the FDIC Chief In House Counsel in HOUSTON.
I was able to get HUNDREDS of folks released from loans OWNED by the FDIC from the Looted, Failed IRAN CONTRA BANK, Western Bank Houston. The "DIRT" LAND CONS engaged in by folks like GARY MAURO the Clintons Campaign Manager in Texas were EXACTLY like Whitewater and Castle Grande. FACT there are MANY MANY THOUSANDS of Castle Grande and Whitewater LAND CONS all over America.”
FDIC Whistleblower Richard Dunn
5. Richard Dunn, asset manager was employed two years by an RTC/FDIC office in Pennsylvania. Dunn discovered that an FDIC contractor had overcharged the agency and brought the matter to the attention of RTC/FDIC management and was fired.
FDIC Whistleblower Michael J. Koszola
6. Mr. Koszola reported that a former Chairman of the Resolution Trust Corporation (RTC) had been buying RTC properties through straw purchasers. Koszola testified with other RTC employees before the Senate Banking Committee. See Michael J. Koszola v FDIC 96-cv-0171.
FDIC Whistleblowers John and Rhetta Sweeney, Jr.,
7. In the case of John and Rhetta Sweeney, Jr., (August of 1987), the Sweeney’s entered into a commercial loan agreement with ComFed Savings Bank of Lowell, Massachusetts to finance the development of their home and 14 acres of land. The bank violated state laws. The Sweeney’s sued the bank for "unfair and deceptive trade practices." The Court documents confirmed that the Bank admitted ComFed had been run as a criminal enterprise by bank officers, directors, accountants, lawyers, and appraisers costing the taxpayers a three (3) billion dollar loss. The Sweeney’s exposed a multi-billion dollar fraud ring orchestrated by FDIC reported officials.
Honorable Judge Hughes, Dallas Texas
8. September, 2006, Judge Hughes issued a 131 ruling against the FDIC on behalf of Hurwitz and Maxxam. Judge Hughes ruled that, “FDIC officials were arbitrary, dishonest, exploitative, extortionate, and abusive. Judge Hughes concluded that FDIC is a corrupt agency with corrupt influences on it, bringing this litigation."
FDIC Whistleblower Mary Laverty (Employee Relations)(Current Employee)
9. January 11, 2005 - Gibson-Michaels received telephone from NETU
Union representatives D. Scholl and B.Coll. Officials informed Gibson-Michaels that FDIC Labor Relations Specialist Mary Laverty said that, “Yolanda should have kept her mouth closed regarding bank, receivership, wire, and securities fraud and that FDIC management is writing a letter to propose removal from