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a's second term.Watt represents the
Charlotte area, home base of behemoth Bank of America Corp. He becomes
yet another high-profile African-American and the second North Carolinian
nominated by Obama in three days to a top government post. On
Monday, Obama nominated Anthony Foxx, mayor of Charlotte, to head the Transportation
Department.Watt, who has a consistently liberal voting record, is expected
to face Republican opposition to his confirmation and Sen. Bob Corker, R-Tenn.,
was among the first to express disappointment.The White House was already
lining up supporters who might hold some sway with GOP senators."This gives
new meaning to the adage that the fox is guarding the hen
house," Corker, a member of the Senate Banking, Housing and Urban Affairs
Committee, said in a written statement. "The debate around his nomination
will illuminate for all Americans why Fannie and Freddie failed so miserably."Corker
added that the administration should "explicitly lay out" its plans for
dissolving the government-sponsored lending companies before anyone is considered
for the FHFA's top job.The administration put forward a plan in 2011
to slowly dissolve Fannie and Freddie, with the goal of shrinking the
government's role in the mortgage finance system. But Congress has yet to
decide how much the government's role should be reduced.Erskine Bowles,
a fellow North Carolinian and former White House chief of staff under
President Bill Clinton, pra
ised Watt as a first-rate selection. Both were
classmates at the University of North Carolina at Chapel Hill. Bowles, the
Democrat in a debt-tackling partnership with former Republican Sen. Alan
Simpson of Wyoming, said Watt brings "a bright mind, great work habits
and an understanding of how Washington works to the job."Hugh McColl, former
Bank of America chairman and CEO, also welcomed Watt's nomination. McColl
said he has known Watt for four decades, first meeting him through
his brother-in-law, former Rep. John Spratt, D-S.C., who attended Yale Law
School at the same time as Watt."What he brings to everything, doesn't
matter the subject, is an open mind," McColl said. "He has clarity
of thought."Charlotte is a major banking center, and the top donors to
Watt's political campaigns over the years have been bank political action
committees and bank officials and employees.His nomination comes nearly
a year after DeMarco, who has been acting director, stood by a
decision to bar Fannie and Freddie from reducing principal for borrowers
at risk of foreclosure, resisting pressure from the administration. DeMarco
long has opposed allowing the mortgage giants to offer principal reduction.In
March, attorneys general from nine states, led by Democrats Eric Schneiderman
of New York and Martha Coakley of Massachusetts, sent Obama a letter
saying that Fannie and Freddie under DeMarco have been a "direct impediment
to our economic recovery."
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