In a ground-breaking development, Democratic Senator Tim Johnson called on FHFA director Mel Watt to end the conservatorships of Fannie and Freddie. In prepared remarks for the Senate Banking Committee hearing with Federal Housing Finance Agency Director Melvin L. Watt, Senator Johnson stated:
“The Enterprises remain trapped in conservatorship today. FHFA continues to perform the dual role of both regulating and running the businesses of the largest entities in the mortgage market. This is not sustainable, and there is no consensus in Congress regarding how to move forward.”
“Everyone agrees that conservatorship cannot continue forever, so I hope my colleagues will keep working towards a more certain future for the housing market. However, if Congress cannot agree on a smooth, more certain path forward, I urge you, Director Watt, to engage the Treasury Department in talks to end the conservatorship.
I cannot possibly convey in words how incredible it was to hear Senator Johnson confirm what we knew to be true since May. We have been both doubted and ridiculed by all sides for sharing the truth regarding the coup. I want to thank all of you who truly kept the faith and trusted that we were only sharing what was revealed by a few very courageous patriots. As I have assured all along, there are still a few people left in the world who believe the truth needs to be told.
The wind is truly at our backs, let’s take a moment and savor this victory.
You better believe we will have more to say on this incredible news, watch this post for updates. Keep the faith!
Edit 1:35 PM
Clea Benson reports: FHFA ‘s Mel Watt tells reporters he wouldn’t rule out talks “in the long term” with USTreasury to end Fannie-Freddie conservatorships.
Edit 5:42 PM
Folks, everyone needs to take a deep breath and relax, today was a momentous day no doubt but there is still much to do. I have been working all afternoon sorting through the many new developments. I will be posting an update tonight to address some of the larger issues from today. The picture grew much clearer today, and very clear battle lines have been drawn.
Final Edit 10:32 PM
We witnessed two amazing paths emerge in the Senate Banking Committee today. The Democrats have clearly seen the light and have begun to honor their ideological beliefs; they have moved the coup from the closet into the street. I commend them for this and assure them that we will continue to do all we can to combat our mutual opponents with our simple weapon of the truth. The Republicans, on the other hand, still continue to disappoint us. Although they have been wise enough finally to see the democrats plan they still continue to let their hatred of Fannie and Freddie force them to compromise their core conservative beliefs. I watched as Republican Senator Crapo confronted Mel watt about the abrupt shift that Mel initiated by unwinding all of the steps Demarco had in place to bring about the GSEs demise. Over and over Mel handled himself brilliantly today as Republican after Republican slyly tried to get him to leave the fate of Fannie and Freddie in their hands.Mel laughed them off as they repeated their tired old lies concerning the “failed model of Fannie and Freddie” and the dire need to eliminate them. Anyone who still doesn’t know who are allies and enemies are I highly suggest you watch the entire video of today’s hearing. This was made clear by contrasting Democratic Senator Johnson’s and Republican Senator Crapos statements.This will surely clarify the issue.
It is ironic, but Just yesterday I passed on attending the CRT luncheon in favor of a lunch meeting with Josh Rosner. We had a very productive discussion and ironically much of what we discussed came to fruition today.Though we don’t agree on everything, I believe we both learned quite a bit from each other. We look forward to working more with Josh in the future; he is a very valuable asset in any GSE related debate.
One of our readers Ari asked a great question today, when exactly will they be released? The simplest answer Ari is that in many ways they already have been.In the aftermath of the financial crisis, there was much confusion. Unfortunately, the Democrats allowed themselves to be convinced that Fannie and Freddie played a role that was largely untrue. President Obama like most Presidents fell under the spell of the big banks and all of the propaganda they bring with them. I am not making excuses for anyone I am simply stating the truth. Fortunately, they have awoken to the truth.
We should not underestimate the role we have played in this transformation. No longer can our Judges and elected leaders hide under the propaganda shroud created by the largely conservative financial media. The truths we are compiling and distributing have played a critical role in dispelling the web of lies. It’s great to see so many democrats come out from the shadows and join our cause. I can share more openly now that I was informed back in September that our humble campaign had a profound effect on the Congressional Black Caucus as well as other key Democrats.I had the pleasure of meeting the Honorable Congressman John Lewis this past summer, and I must say his example has helped me on our quest for the truth.
I could write all night about today’s incredible developments, but it has been a very long rewarding day and I must rest. By popular demand, I will re-share a song that I am sure today you better understand what I meant when I shared it last.
Keep the Faith
Mel Watt at Senate Banking Committee.
By popular demand: