Three Republican members of the Senate Banking Committee voted in favor of the nomination of Joseph A. Smith, Jr., to direct the Federal Housing Finance Agency today. The remaining six Republicans on the committee voted against the nomination, and Judd Gregg of New Hampshire was not present. Senators Bob Bennett of Utah, Bob Corker of Tennessee, and Kay Bailey Hutchison of Texas joined 13 Democrats in favor of Smith, currently North Carolina’s bank commissioner. The whole Senate will now vote to approve Smith, who, if confirmed, will direct the agency chiefly responsible for Fannie Mae and Freddie Mac.
Senator Richard Shelby of Alabama, the ranking member on the committee, released this statement on Smith this afternoon:
Fannie Mae and Freddie Mac have already cost taxpayers $150 billion. Absent a strong regulator, future losses could be even greater. The first confirmed Director of the FHFA must be a knowledgeable, effective, and independent regulator whose primary focus must be on protecting the American taxpayer. In my judgment, Mr. Smith is not the best candidate for this job. With all due respect to his background, Mr. Smith has no experience running or regulating institutions this massive and complex. By his own admission, he believes there is a great deal he has yet to learn. This is not a position that lends itself to on-the-job training. The first confirmed Director must hit the ground running equipped with the skills and experience needed to be a strong regulator free from influence by the current Administration. In other words, we need a watchdog not a lapdog.
Read more about Smith in this week’s issue of THE WEEKLY STANDARD here.
