FHFA Director Defends Big Bonuses To Fannie And Freddie Execs

By Janie Amaya

Federal Housing and Finance Agency (FHFA) Acting Dirctor Edward DeMarco responded to questions from members of the Senate Banking, Housing and Urban Affairs Committee today over why the agency has paid out $13 million in bonuses to the top 10 executives at twin mortgage giants Fannie Mae and Freddie Mac.

DeMarco defended the boneses, saying FHFA must take such necessary actions to put the regulated entity in a sound and solvent condition in order for it to operate in a safe and sound manner.

“I certainly think we have an entire competitive marketplace in the financial industry that suggests that compensation is an important factor in attracting and retaining high quality talent,” DeMarco said.

On Sept. 8, 2008, FHFA took conservatorship of Fannie Mae and Freddie Mac when the housing crisis began, and has since been working to help both companies regain footing.

“In our time as conservator, we’ve had quite a number of senior executives depart both companies and it has not always been easy to fill these positions with people from the outside,” DeMarco said. He added that often times compensation and the uncertain future of the companies are cited as key reasons for candidates to turn down offers.

DeMarco said that through the Emergency Economic Stabilization Act of 2008, the FHFA must also implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the taxpayers to take advantage of available programs to minimize foreclosures helping the companies succeed.

However, with no improvement in these companies, some committee members argued that the continuing failure is Congress’ fault.  

According to top Republican Richard Shelby (R-Ala.), Fannie and Freddie have already requested an additional $14 billion for last quarter’s loses.

“If Congress had acted, taxpayers would not be subsidizing the pay of Fannie and Freddie executives,” Shelby said.

Currently, the FHFA has established a new set of standards for mortgage servicers.

“We try to simplify the process and to provide very uniform guidance to mortgage servicers on what to do the next day after a mortgage payment is missed, DeMarco said.

Detainee Language In Defense Bill Irks Pentagon's Top Lawyer

By Lisa Kellman

Defense Department General Counsel Jeh Johnson spoke out Tuesday against provisions of the National Defense Authorization Act’s (NDAA) that would force give the military full control of handling suspected terrorists.

The Senate and House have each drafted versions of the 2012 NDAA, the primary funding bill for the Department of Defense, and while there is broad agreement on the major issues, the detainee-related provisions inserted by Republicans are a point of contempt.

The provisions would amend the 2001 Authorization for Use of Military Force (AUMF) Act that gave the president increased authority to capture and prosecute suspected terrorists. The new policies proposed would restrict transfer of detainees out of U.S military prisons and force civilian governments to turn over terror suspects to the U.S. military.

Johnson, who spoke at The Heritage Foundation, argued that pending legislation from Congress will “limit the executive branch’s and military’s counterterrorism options, complicate our efforts to achieve continued success and will make military detention more controversial, not less.”

Johnson recommended a “less controversial, more credible and sustainable legal framework” similar to that afforded by the AUMF.

The Washington Post has more on the story…

Republicans Tout Massive Anti-Obamacare Petition

By Mike Hothi

A collection of Republicans from both chambers touted a massive online petition Wednesday as evidence that the American people are firmly in favor of repealing the Affordable Care Act.

The petition, collected by RepealItNow.Org and presented to lawmakers this week, reportedly contains 1.6 million signatures.

Speaking during a press conference outside the U.S. Capitol, Sen. Jim DeMint (R-S.C.) cited the outpouring of support as evidence that the health care reform law should be overturned immediately, before the Supreme Court weighs in.

“This is not a partisan issue. This is an American issue,” DeMint, standing behind a stack of boxes containing the petition, said. “We cannot wait for the courts.”

The Affordable Care Act was signed into law last year and has been Conservatives’ go-to example for intrusive government under the Obama administration. The Supreme Court will likely determine the constitutionality of the law’s personal insurance mandate before the end of their current term. 

Republicans Blast President For Igniting Social Security Scare

Vanessa Remmers and Alex Harris

Republicans from both chambers banded together Thursday to argue something out of the ordinary in light of recent debt negotiations: there is plenty of money.

At least for social security.

Republican Senators and Representatives both condemned President Barack Obama for implying that seniors may not receive their social security checks if lawmakers fail to raise the debt ceiling.

“ I think the President should apologize for politicizing Social Security,” Sen. Rand Paul (R-Ky.) said during a briefing with fellow GOP Senators. “It’s objectively false to say there wouldn’t be enough money.”

Paul noted that the government receives $200 billion monthly, while social security expenses are in the range of $60-80 billion.

“There’s plenty of revenue to pay all of the social security checks, to pay all of the interest,” Paul said.

During a separate briefing, Rep. Phil Roe (R-Tenn.) blasted the President’s stance on social security as a scare tactic.

“There is no reason for Obama to be scaring our senior citizens,” Roe said.

Senate GOP Leadership Remains Intact

By Kyle LaFleur

As expected, there will be no shakeup at the top for Senate Republicans.

Following a decent showing in this month’s midterm elections, Senator Mitch McConnell (R-Ky.) was elected to continue serving as Senate Minority Leader. Speculation that McConnell would be challenged by Tea Party candidate Jim DeMint (R-S.C.) for the top Senate spot never materialized.

“Let me just say that I think that we have a great opportunity here to demonstrate that we are responding to what the American people clearly would like us for us to do,” said McConnell. “Cut the spending, cut the debt and get private sector job creation going again.”

Arizona Senator Jon Kyl will retain his title as Senate Minority Whip and Tennessee Senator Lamar Alexander will keep his position as Republican Conference Chair.  

“In the last several months we have tried as best we could as leadership of the Republican Conference to reflect the will of the American people,” said Kyl. “And I think our colleagues have expressed confidence in the leadership team by returning all of us to the positions in which we previously served.”  

Meanwhile, Sen. John Cornyn (R-Texas) was elected Tuesday to serve another term as chairman of the National Republican Senatorial Committee. Cornyn helped the NRSC raise tens of millions of dollars for Republicans before the elections, in which the party picked up six seats in the Senate.