Jul 29 2010

SHELBY, DODD CALL FOR NOMINATIONS OF FINANCIAL REGULATORS

Washington, D.C.

U.S. Senators Richard Shelby (R-Ala.) and Christopher Dodd (D-Conn.), Ranking Republican and Chairman of the Committee on Banking, Housing, and Urban Affairs, today sent a letter to President Barack Obama urging the long overdue nomination of a Director to lead the  Federal Housing Finance Administration (FHFA).  The FHFA was created by law in 2008 and soon thereafter became the conservator for failed Government-Sponsored Enterprises, Fannie Mae and Freddie Mac.  The FHFA has been without a permanent, Senate-confirmed Director since its inception.  Shelby and Dodd also called on President Obama to make timely appointments to fill positions at other federal financial regulators, including those created by the recently passed financial regulation bill.  Shelby issued the following statement regarding the awaited nomination of the FHFA Director:

"Fannie Mae and Freddie Mac have already cost taxpayers $150 billion, and there is no end in sight to the hemorrhaging," said Shelby.  "In light of estimates that the total bailout of these entities could reach one trillion dollars, it is imperative that the President nominate an FHFA Director who is fully accountable to Congress regarding how this money is spent.  While the President is dragging his feet on dealing with the future of Fannie Mae and Freddie Mac, the least he could do for taxpayers is carry out this legal duty."

A scanned copy is attached. A scanned copy is attached.


July 28, 2010

The President
The White House
1600 Pennsylvania Ave
Washington, DC 20005

Dear Mr. President:

          The Federal Housing Finance Regulatory Reform Act of 2008 (the Act) created the Federal Housing Finance Administration (FHFA) and the position of Director to lead it.  On July 30, 2010 it will have been two years since the Act was signed into law. As yet, the FHFA is without a permanent Director.

           On September 7, 2008, both Fannie Mae and Freddie Mac were placed in conservatorship.  Per the terms of the conservatorship, the Director of the FHFA acts with all the powers of the shareholders, directors, and officers of the GSEs. While the FHFA currently has an acting Director who has served well under difficult circumstances, we believe that a permanent Director should be appointed and confirmed. Therefore, we urge you to forward a nomination to the United States Senate as soon as possible.

           We also urge you to make timely appointments to fill the positions at other federal financial regulators, including those becoming vacant and those created by the “Wall Street Reform and Consumer Protection Act.”  The condition of the financial system, while improving, continues to warrant close supervision and oversight. A full contingent of federal financial regulators is crucial to maintaining adequate federal prudential regulation and consumer protections.

           As Chairman and Ranking Member of the Senate Banking Committee, we assure you that we will consider your nominees in an expeditious manner. Thank you for your immediate attention to this important matter.

                                                                        Sincerely,

 


Christopher J. Dodd                                                                            

Richard C. Shelby

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