Washington Watch: Miller on foreclosure (audio), Hagan and Burr on Geithner
From this week's Washington Watch colum:
Rep. Brad Miller, a Raleigh Democrat who represents parts of Greensboro and Rockingham County, is taking another swing at his mortgage modification legislation. The bill, he says, may do more than the much-ballyhooed financial industry bailout to keep people in their homes.While it passed the House Judiciary Committee during the last session of Congress, the measure never got a vote on the House floor, in part because of resistance on the Senate's part.
[snip]
Under current law, bankruptcy judges can reset the terms of your borrowing on a second house like a beach house or investment property in the mountains.
But that same judge can't touch your first mortgage on the place where you live. And if you're like most folks who find themselves in bankruptcy proceedings, that's probably both the only piece of real property you own and your largest obligation.
Click here for info in Miller's bill.
And Click here for a conversation I had with Miller about the bill before he reintroduced it this year.
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From the cutting room floor: We reported that North Carolina Sens. Kay Hagan, a Democrat, and Richard Burr, a Republican, split on the confirmation of Tim Geithner to be Treasury Secretary – Burr was a no vote, Hagan voted yes. The vote was 60-34-4.
Burr's rationale:
"I think the President should be given the benefit of the doubt in selecting the executive leadership of his Administration, and I’ve been pleased with many of his nominations. In weighing a nominee, the most important questions I ask is if he or she is qualified to effectively lead an executive department and whether the nominee possesses the judgment necessary to manage and spend taxpayer money wisely and in an open and transparent manner."As I asked these questions, I came to the conclusion that Mr. Geithner does not measure up. With the entire banking system collapsing, Mr. Geithner served as the head of the most important and powerful Reserve Bank in the nation. During his tenure at the New York Federal Reserve, Mr. Geithner was a leading participant in many late-night, closed-door deals made between major financial institutions and the federal government. I have particular concern with the ill-conceived proposed merger between Citigroup and Wachovia. It is now clear, as Citigroup is on the verge of break up, that it was in major financial trouble.
"Many questions remain about the decision-making process and the judgment of government participants, including Mr. Geithner and the New York Federal Reserve. So far, Mr. Geithner’s response to the Finance Committee on this particular issue raises more questions than it answers. Additionally, I have concerns about the unanswered questions concerning Mr. Geithner’s taxes and his now being asked to head the Treasury Department and oversee the IRS. For these reasons, I cannot support Mr. Geithner’s nomination as Secretary of the Treasury."
Hagan's statement:
"I have said that it is too important in these tenuous economic times to hold up this critical appointment for a serious, but honest, mistake. I am disappointed that Mr. Geithner made this mistake, but he has taken responsibility for it, paid his back taxes, and with overwhelming support from the Finance Committee, and the U.S. Senate, I am pleased that this evening, he became our country’s new Treasury Secretary."Particularly with regards to North Carolina manufacturers, I was pleased with Mr. Geithner’s hard line on Chinese currency, saying he believes, as does President Obama, that China is manipulating its currency, adding to the massive trade deficit we already have with them. We need someone directing the Treasury Department who comes to the position with a good deal of on-the-job experience and expertise. He has the benefit of seeing, first-hand, what worked and what did not, during the past year. Mr. Geithner, in his testimony to the Senate Finance Committee, pledged this: “Our test is to act with the strength, speed and care necessary to get our economy back on track and to restore America's faith in our economic future." That's exactly what I believe is necessary, as well, and I look forward to working with him in the future."
