Yesterday, nearly five years after President Barack Obama first assumed office, the U.S. Senate removed what has been described by some progressives as the "single largest obstacle to meaningful economic recovery" when it was finally allowed to vote for the confirmation of Rep. Mel Watt (D-NC) as the new Director of the Federal Housing Finance Agency (FHFA).

In a vote allowed by a recent change to filibuster rules in the U.S. Senate, Watt will now replace Bush appointee Edward J. DeMarco, who was first appointed in 2008 and became the acting Director of the federal agency in 2009.

The FHFA oversees the government-sponsored mortgage giants, Fannie Mae and Freddie Mac, which collectively own 60% of all mortgages in the United States. The agency also oversees 12 Federal Home Loan Banks, which, according to the Washington Post, "serve as major sources of funding for hundreds of banks."

In a statement issued late yesterday, praising Watt's confirmation and chiding Senate Republicans for their obstructionism in holding up this and many other uncontroversial Presidential nominations, Rep. Xavier Becerra (D-CA), Chairman of the House Democratic Caucus, highlighted the importance of the FHFA's intended role in safe-guarding homeowners.

"Republicans in the U.S. Senate callously blocked the confirmation of the supremely qualified Congressman Mel Watt to be our nation's Director of the Federal Housing Finance Agency," Becerra said. "Today, by a bipartisan vote of 57 to 41, Rep. Watt is on his way to lead the FHFA as America's watchdog over the American Dream. What a difference a day makes when the Senate is free of the mischief of exploitive filibusters"...

On Thursday, despite a deal said to have been struck with Democrats in August, Senate Republicans successfully used the filibuster to block meaningful economic reform again.

With just 42 Republican votes, the GOP was able to block the majority and continue to prevent the President's nominee --- his second --- from taking taking the helm at a crucial federal agency, ensuring the man appointed by George W. Bush would remain in that key role.

In late summer, in "GOP Filibuster Still 'Single Largest Obstacle to Meaningful Economic Recovery'", we explained how the Senate’s Republican minority had successfully used the filibuster to prevent the Obama Administration from replacing Bush Administration holdover Edward DeMarco as head of the Federal Housing Finance Agency(FHFA) . The FHFA is the federal agency which oversees government-sponsored mortgage giants, Fannie Mae and Freddie Mac, which own 60% of all mortgages in the United States.

Last year, in a petition to President Barack Obama, the advocacy group Change.Org described DeMarco as "the single largest obstacle to meaningful economic recovery". That assessment was shared by The New York Times' Nobel Prize winning economist Paul Krugman, who called for President Obama to "Fire Ed DeMarco," after DeMarco, in defiance of the Obama Administration, rejected a U.S. Treasury Department request "that he offer debt relief to troubled homeowners --- a request backed by an offer that the U.S. Treasury would pay up to 63 cents to the FHFA for every dollar of debt forgiven."

Although Krugman explained at the time that "a reduction in debt burdens would strengthen the economy," creating "greater revenues" that could "offset any losses from the debt forgiveness itself," DeMarco has consistently sought to protect the Wall Street casino (aka the mortgage backed securities market) against any relief to homeowners who were victimized by those fraudulent schemes.

All of these years later, Republicans in the U.S. Senate, defying the majority will of the American people, continue to help him...

Last year, in a petition to President Barack Obama, the advocacy group Change.Org described Edward J. DeMarco, a holdover from the Bush Administration who still serves as Acting Directer of the Federal Housing Finance Agency (FHFA), as "the single largest obstacle to meaningful economic recovery."

The FHFA controls the government-sponsored mortgage giants, Fannie Mae and Freddie Mac, which own 60% of all mortgages in the United States.

Around the time Change.Org began circulating its petition, New York Times' Nobel Prize winning economist Paul Krugman, called for President Obama to "Fire Ed DeMarco". The blog detailed how DeMarco had, in defiance of the Obama Administration, rejected a U.S. Treasury Department request "that he offer debt relief to troubled homeowners --- a request backed by an offer that the U.S. Treasury would pay up to 63 cents to the FHFA for every dollar of debt forgiven."

Treasury's request was rejected even though, as Krugman explained, "a reduction in debt burdens would strengthen the economy," creating "greater revenues" that could "offset any losses from the debt forgiveness itself."

The fact that a Bush holdover, who, for so many years, has been committed to protecting the same Wall Street casino --- the market created out of mortgaged backed securities --- whose collapse triggered what Krugman insists is now a "depression", is primarily due to the ability of Senate Republicans to block both of the nominations Obama finally made to replace him...