Corker: Watt heading Federal Housing Finance Agency = “fox guarding the hen house”


As you’ve probably already heard, in the latest example of this administration’s naked cronyism (THIS WEEK), President Obama has nominated my Congressman in Name Only – Mel Watt – to oversee the Federal Housing Finance Agency.   The nomination has already sparked controversy, and for good reasons:

President Barack Obama nominated Rep. Mel Watt, D-N.C., as the new director of the Federal Housing Finance Agency Wednesday, but the president’s pick could face strong headwinds in his confirmation hearings as policymakers continue to bicker over the future of government mortgage giants Fannie Mae and Freddie Mac.


The Obama administration has struggled to find a replacement for Ed DeMarco who has served as the agency’s acting director since 2009. Obama previously nominated North Carolina Commissioner of Banks Joseph Smith for the post in 2011, but Smith later withdrew his bid after running into strong resistance from Republicans.

Watt has been in Congress for 20 years and is a longtime member of the House Financial Services Committee, which oversees housing issues. According to multiple sources, Watt was tapped to the FHFA’s next director because of his experience on the committee as well as his role in brokering the passage of the Dodd-Frank Wall Street Reform Act.

“Mel has led efforts to rein in unscrupulous mortgage lenders and he’s fought to give more Americans in lower income neighborhoods access to affordable housing,” Obama said in press conference announcing Watt’s nomination Wednesday. “He knows better than anyone else what started the housing crisis and he knows what it’s going to take for responsible homeowners to fully recover.”

Uh, he most certainly does NOT “know better than anyone else” what started the housing crisis. Watt was part of the Democrat demagogue brigade during the Bush admin who pushed BACK on efforts to REFORM the oversight for Fannie and Freddie:

But Watt’s road to confirmation won’t be a smooth one. Sen. Bob Corker, R-Tenn., released a statement Wednesday objecting to the nomination arguing that a new director should not be considered until there’s a clearer picture of the future of Fannie and Freddie, entities which have been under federal conservatorship since 2008 and now play an outsized role in the housing market, according to some critics.

“I could not be more disappointed in this nomination. This gives new meaning to the adage that the fox is guarding the hen house,” he said. “The debate around his nomination will illuminate for all Americans why Fannie and Freddie failed so miserably.”

Anthony Sanders, professor of real estate finance at George Mason University, similarly characterized the appointment calling it akin to having the cookie monster in charge of keeping Congress out of the proverbial cookie jar.

“Watt is part of the Congressional Black Caucus, which has been very active in promoting principal reduction and the easing or mortgage standards, basically recreating the same disaster we had last decade,” Sanders says. “This is a political appointment for a person who wants to put the foot on the gas again.”

Sanders also points out that some of Watt’s biggest donors are also some of the nation’s biggest banking interests, a factor that could trip him up at his confirmation hearings. According to, among Watt’s top five contributors between 1992 and 2012, three (Bank of America, the American Bankers’ Association, and Wachovia) were in the banking industry.

Oops …

But hey, Watt’s black (a bonus when it comes to the admin’s “diversity issues”), and he’s from a state the Democrats would like to win back in 2016, so what they hey … why not nominate him to help oversee the industry he and his fellow liberals pushed to give home loans to risky people? #HeadDesk

#BostonBombing: Did the Saudis warn us ahead of time in writing? UPDATE: Saudi denial?


**Posted by Phineas

UPDATE: I’m sticking this at the top because the story’s important enough to warrant it.  Now we have a “Saudi official” saying there was a letter, and their embassy in Washington saying no, there wasn’t. So, who’s lying, and why? (via Toby Harnden)

The Saudi embassy in Washington, D.C. today denied its government warned the U.S. about accused Boston bomber Tamerlan Tsarnaev.

According to a highly placed source who spoke to MailOnline, the Saudis sent a written warning about Tsarnaev to the U.S. Department of Homeland Security in 2012. That was long before pressure-cooker blasts killed three and injured hundreds.

The official told MailOnline about a written warning from the Saudi government to the Department of Homeland Security, and said he had direct knowledge of that document.

But the Middle Eastern nation’s embassy in Washington denied that account on Wednesday.

It issued a statement which read: ‘The Saudi government had no prior information about the Boston bombers. Therefore, it is not true that any information, written or otherwise, was passed to the U.S. Department of Homeland Security (DHS) or any other US agency in this regard,’ an embassy statement statement claimed.

‘The Saudi government also does not have any record of any application by Tamerlan Tsarnaev for any visa to Saudi Arabia.’

Original article follows.

If this is true, our intelligence services and the White House have a boatload of explaining to do:

The Kingdom of Saudi Arabia sent a written warning about accused Boston Marathon bomber Tamerlan Tsarnaev to the U.S. Department of Homeland Security in 2012, long before pressure-cooker blasts killed three and injured hundreds, according to a senior Saudi government official with direct knowledge of the document.

The Saudi warning, the official told MailOnline, was separate from the multiple red flags raised by Russian intelligence in 2011, and was based on human intelligence developed independently in Yemen.

Citing security concerns, the Saudi government also denied an entry visa to the elder Tsarnaev brother in December 2011, when he hoped to make a pilgrimage to Mecca, the source said. Tsarnaev’s plans to visit Saudi Arabia have not been previously disclosed.

The Saudis’ warning to the U.S. government was also shared with the British government. ‘It was very specific’ and warned that ‘something was going to happen in a major U.S. city,’ the Saudi official said during an extensive interview.

It ‘did name Tamerlan specifically,’ he added. The ‘government-to-government’ letter, which he said was sent to the Department of Homeland Security at the highest level, did not name Boston or suggest a date for his planned attack.

If true, the account will produce added pressure on the Homeland Security department and the White House to explain their collective inaction after similar warnings were offered about Tsarnaev by the Russian government.

DHS pretty much denies the whole thing, but the article reports two meetings between high-ranking Saudi and US officials: the first between Obama and the Saudi Interior Minister in January, while the second was an unscheduled meeting between Obama and the Saudi Foreign Minister two days after the marathon bombing. One almost gets the impression of Saudi officials pleading “Look do we have to draw you guys a picture? We’ve been telling you to look out for this crazy Chechen!”

But… let’s not jump the gun, here. This story comes from a single Saudi source, and there are reasons both to believe and not believe it.

In favor: While not best friends, the Saudis have been a close ally against jihad terrorism, having experienced it themselves and given that al Qaeda has declared open season on the government. They’ve also provided reliable information in the past: the article mentions the “printer cartridge plot” and Richard Reid, the “shoe-bomber” as examples. And while the Yemen connection seems out of left field, it has come up in connection with the Tsarnaevs before (h/t Hot Air), and the Saudis are deeply involved in Yemen. Warning us, besides being the decent thing to do, would also be in the Kingdom’s best interests to curry favor with D.C.

On the other hand: The Saudi government may not be a state sponsor of terrorism against the West, but it provides support to Salafi and jihad groups around the world, prominent wealthy Saudis donate directly to jihad groups, and high-ranking religious figures in the Kingdom urge their young men (of whom they have way too many to gainfully employ) to go wage jihad against the infidel. (1) It’s a open dirty secret of this modern age. And so it could be very tempting for the Saudis to claim “We tried to tell you,” hoping to earn some credit from the many Americans upset with the Obama administration and divert attention (again) from their own involvement with jihad.

For now, I lean toward this being true, at least to some degree: the Saudis may have warned us, but perhaps the information wasn’t nearly as cut and dried as they make it out to be. And I find it hard to imagine they’d claim “We told the British, too,” knowing the UK could falsify their claim at the drop of a hat. On top of that, it looks like we may have been making some of the same kind of mistakes we made before 9/11 with overly compartmentalized information that isn’t shared in a timely manner with all concerned parties. Shades of the “Gorelick Wall.”

And if this is true, even to a limited degree, it looks like another example of fatally stupid incompetence on the part of an administration that just wishes terrorism would go away.

Newsflash: It won’t.

(1)You might recall there were regular reports of young Saudi men being urged to go fight us in Iraq. Basically, they’re happy to send these nuts anywhere to get killed, as long as they’re out of Saudi Arabia.

(Crossposted at Public Secrets)