Donald Trump’s nominee to head the Treasury Department is facing questions at a confirmation hearing about the thousands of foreclosures made by a bank he ran during the financial crisis.
Steve Mnuchin is speaking to the U.S. Senate Finance Committee where ranking Democrat Ron Wyden says he will ask “tough questions” about the nominee’s “history of predatory lending.”
Mnuchin, who served as candidate Donald Trump’s finance chairman, got rich by making skillful investments. One of those investments was the acquisition of sub-prime mortgage lender IndyMac. An analysis in the Wall Street Journal says the troubled bank had one of the worst portfolios in the business with more than nine percent of its loans at least two months behind. The journal story says previous management made many loans without checking to see if the borrower had a job and the capacity to repay the mortgage.
Critics say Mnuchin’s bank treated distressed borrowers unfairly and did too little to help them. Mnuchin says he was committed to modifying loans in ways that could stop the foreclosure process. The hearing is expected to last several hours.
Senate Finance Committee Chairman Orrin Hatch, a Republican, says Mnuchin is an “effective choice” to lead a department that should play a key role in getting America’s economy “back on track.” Senator Hatch says Mnuchin has the skill and insight to help reform the tax code, promote investment, and spur job creation.
The Treasury Department is supposed to maintain a strong economy by promoting conditions that enable economic growth in the United States and elsewhere. Treasury has more than 100,000 employees who manage and protect the financial system.
Post a Comment