Sen. Tim Johnson is about to become a more powerful force on Capitol Hill.
The third-term Democrat from Vermillion is in line to become chairman of the Senate Banking, Housing and Urban Affairs Committee when the new Congress convenes Jan. 5. The powerful panel oversees the financial industry and writes laws governing investment and insurance companies, public housing and transit.
No surprises there. Democrat still have control of the senate. To be fair Senator Johnson is the next logical choice. Seems strange for a place where illogical decisions come from. Then I read this.
In a recent interview, Johnson said he would have two priorities as banking chairman: overseeing the Obama administration’s implementation of the sweeping financial regulation bill – known as Dodd-Frank – that Congress passed in July, and determining the future of Fannie Mae and Freddie Mac, the mortgage giants that the government took over two years ago and that some Republicans want to privatize.
If we look at the mortgage meltdown hard enough, we will find Fannie Mae and Freddie Mac right the middle of it all. While we all can appreciate making homes more affordable, was it really worth the cost? Part of the Dodd-Frank is more regulations on the banking industry. Last year Senator Johnson did vote against a bill that more oversight on the credit card business.
While I’m willing to keep an open mind, I am somewhat pessimistic about what we can expect from this committee.