Committee Approves Watt Nomination, Full Senate is Another Story

Reuters is reporting that the SenaternBanking Committee has approved the nomination of Mel Watt to replacernEdward J. DeMarco as director of the Federal Housing Finance Agency. Watt is currently a Democratic congressman from North Carolina. </p

Watt’s final confirmation to run thernagency that regulates Freddie Mac, Fannie Mae, and the Federal HomernLoan Banks is however far from a foregone conclusion. The vote byrnthe Banking Committee was on straight party lines and manyrnRepublicans in the senate made it clear when President Obamarnnominated Watt in May that they would not vote for his confirmation. </p

Under current Senate operating rules itrntakes 60 votes to confirm an appointee and the Democrats, whilerncontrolling the Senate, do not have a super majority. The recentrncompromise between Republicans and Democrats which allowed thernconfirmation of Richard Cordray as head of the Consumer FinancialrnProtection Bureau and is supposed to permit the confirmation of sixrnother appointees does not cover the nomination of Watts.</p

Republicans scuttled the nomination ofrnJoseph Smith, North Carolina’s Bank Commissioner to run the agencyrnearly in the President’s first term. This led to the appointment ofrnDeMarco as Acting Director.

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