Melvin Luther Watt (born August 26, 1945) is an American politician who served as director of the

Federal Housing Finance Agency The Federal Housing Finance Agency (FHFA) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), an ...

from 2014 to 2019. He was appointed by President Barack Obama. He is a former

United States Representative The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they ...

for , from 1993 to 2014. He is a member of the

Democratic Party Democratic Party most often refers to: *Democratic Party (United States) Democratic Party and similar terms may also refer to: Active parties Africa *Botswana Democratic Party *Democratic Party of Equatorial Guinea *Gabonese Democratic Party *Demo ...

. A lawyer from

Charlotte, North Carolina Charlotte ( ) is the most populous city in the U.S. state of North Carolina. Located in the Piedmont region, it is the county seat of Mecklenburg County. The population was 874,579 at the 2020 census, making Charlotte the 16th-most populo ...

, Watt served one term as a

state senator A state senator is a member of a state's senate in the bicameral legislature of 49 U.S. states, or a member of the unicameral Nebraska Legislature. Description A state senator is a member of an upper house in the bicameral legislatures of 49 U ...

and was the campaign manager for Charlotte mayor

Harvey Gantt Harvey Bernard Gantt (born January 14, 1943) is an American architect and Democratic politician active in North Carolina. The first African-American student admitted to Clemson University after attending Iowa State University, Gantt graduated wi ...

. On May 1, 2013, President

Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...

nominated Watt to lead the Federal Housing Finance Agency, which, among other agencies, administers or has oversight for the FHA,

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

, and

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia. and he resigned from the House on January 6, 2014. On September 27, 2018, Watt was called to testify before Congress about allegations that he had sexually harassed a female employee at the Federal Housing Finance Agency. On November 29, 2018, Watt was found guilty of two counts of misconduct. He ended his term as director on January 6, 2019 and issued the following quote: "In my view, it's time for me to ride off into the sunset because the standards have become so confused that it's difficult to operate in them," he said, according to a transcript of his interview with investigators.

Early life, education and career

Watt was born in Steele Creek, located in Mecklenburg County. He is the son of Evelyn Lucille (''née'' Mauney) and Graham Edward Watt. Watt is a graduate of York Road High School in

Charlotte Charlotte ( ) is the List of municipalities in North Carolina, most populous city in the U.S. state of North Carolina. Located in the Piedmont (United States), Piedmont region, it is the county seat of Mecklenburg County, North Carolina, Meckl ...

. He was a

Phi Beta Kappa The Phi Beta Kappa Society () is the oldest academic honor society in the United States, and the most prestigious, due in part to its long history and academic selectivity. Phi Beta Kappa aims to promote and advocate excellence in the liberal a ...

graduate of the

University of North Carolina at Chapel Hill A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States ...

in 1967 with a B.S. degree in

Business Administration Business administration, also known as business management, is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. From the point of view of management ...

. In 1970, he received a J.D. from

Yale Law School Yale Law School (Yale Law or YLS) is the law school of Yale University, a Private university, private research university in New Haven, Connecticut. It was established in 1824 and has been ranked as the best law school in the United States by ''U ...

and was a published member of the ''

Yale Law Journal The ''Yale Law Journal'' (YLJ), known also as the ''Yale Law Review'', is a student-run law review affiliated with the Yale Law School. Published continuously since 1891, it is the most widely known of the eight law reviews published by students ...

''.

Early career

Watt practiced law from 1970 to 1992, specializing in minority business and economic development law. He has been a partner in several small businesses. Watt was the campaign manager of

's campaigns for mayor of Charlotte and for the United States Senate election in North Carolina in 1990. Watt served as a member of the

North Carolina Senate The North Carolina Senate is the upper chamber of the North Carolina General Assembly, which along with the North Carolina House of Representatives—the lower chamber—comprises the state legislature of North Carolina. The term of office for e ...

from January 1985 to January 1987.

U.S. House of Representatives

Mel Watt, Official Portrait, 113th Congress

In 1992, Watt entered the Democratic primary for the newly created 12th District, a 64 percent black-majority district stretching from Gastonia to

Durham Durham most commonly refers to: *Durham, England, a cathedral city and the county town of County Durham *County Durham, an English county * Durham County, North Carolina, a county in North Carolina, United States *Durham, North Carolina, a city in N ...

. He won the four-way Democratic primary—the real contest in this heavily Democratic district—with 47 percent of the vote. He then easily won the general election by defeating Barbara Gore Washington ( R) and Curtis Wade Krumel ( L) with 70 percent of the vote, becoming the first Democrat to represent a significant portion of Charlotte since 1953. In 1993, the original version of his district was thrown out in ''

Shaw v. Reno ''Shaw v. Reno'', 509 U.S. 630 (1993), was a landmark United States Supreme Court case in the area of redistricting and racial gerrymandering. After the 1990 census, North Carolina qualified to have a 12th district and drew it in a distinct snak ...

,'' and was reconfigured to exclude its far western and far eastern portions. The new 12th, however, was no less Democratic than its predecessor, and Watt was reelected 10 more times. He only faced one relatively close race against Republican Scott Keadle.

Committee assignments

Committee on Financial Services The United States House Committee on Financial Services, also referred to as the House Banking Committee and previously known as the Committee on Banking and Currency, is the committee of the United States House of Representatives that oversees t ...

** Subcommittee on Financial Institutions and Consumer Credit ** Subcommittee on Insurance, Housing and Community Opportunity *

Committee on the Judiciary Committee on the Judiciary may mean: * United States House Committee on the Judiciary * United States Senate Committee on the Judiciary The United States Senate Committee on the Judiciary, informally the Senate Judiciary Committee, is a standi ...

** Subcommittee on Commercial and Administrative Law ** Subcommittee on Intellectual Property, Competition, and the Internet (Ranking Member) He previously served on the

Joint Economic Committee The Joint Economic Committee (JEC) is one of four standing joint committees of the U.S. Congress. The committee was established as a part of the Employment Act of 1946, which deemed the committee responsible for reporting the current economic co ...

Caucus memberships

Congressional Black Caucus The Congressional Black Caucus (CBC) is a caucus made up of most African-American members of the United States Congress. Representative Karen Bass from California chaired the caucus from 2019 to 2021; she was succeeded by Representative Joyce ...

**(Watt was unanimously elected and served as the Chairman of the Congressional Black Caucus 2005–2006.) *

Congressional Progressive Caucus The Congressional Progressive Caucus (CPC) is a congressional caucus affiliated with the Democratic Party (United States), Democratic Party in the United States Congress. The CPC represents the most Left-wing politics, left-leaning faction of the ...

* International Conservation Caucus

Legislative history

In 2010, Watt sponsored the Coin Modernization, Oversight, and Continuity Act. In 2011, Watt became a co-sponsor of Bill H.R.3261, otherwise known as the

Stop Online Piracy Act The Stop Online Piracy Act (SOPA) was a controversial proposed United States congressional bill to expand the ability of U.S. law enforcement to combat online copyright infringement and online trafficking in counterfeit goods. Introduced on Oc ...

.Bill H.R.3261
GovTrack.us; In 2013, Watts supported the Amash–Conyers Amendment, and was against the Innovation Act.

Director of the Federal Housing Finance Agency

Nomination and confirmation

On May 1, 2013, President Obama announced his intent to nominate Watt to serve as the director of the Federal Housing Finance Agency. Almost immediately, the nomination drew criticism from Republicans, some of whom complained that no politician should lead the agency. Other Republican senators have argued that he lacks technical expertise on housing finance. Obama formally nominated Watt to the post on May 7, 2013. In July 2013, the Senate Banking Committee advanced Watt's nomination on a party-line vote. On October 28, 2013, Senate Majority Leader

Harry Reid Harry Mason Reid Jr. (; December 2, 1939 – December 28, 2021) was an American lawyer and politician who served as a United States senator from Nevada from 1987 to 2017. He led the Senate Democratic Caucus from 2005 to 2017 and was the Sena ...

motioned to invoke

cloture Cloture (, also ), closure or, informally, a guillotine, is a motion or process in parliamentary procedure aimed at bringing debate to a quick end. The cloture procedure originated in the French National Assembly, from which the name is taken. ...

on Watt's nomination, setting up a key test of whether his nomination could overcome procedural hurdles and move to a final up-or-down vote. The motion failed on October 31, with 56 votes in favor, shy of the 60 needed to pass. After a series of procedural votes on December 10, 2013, the Senate voted 57–40 to invoke cloture on Watt's nomination, ending the Republican filibuster under the Senate's recently modified rules for cloture on executive branch nominees. Later that same day, the Senate confirmed Watt in a 57–41 vote. Watt was investigated in July 2018 for sexually harassing an employee.

Controversies

Accusation by Ralph Nader of use of "racial epithet"

In 2004,

Ralph Nader Ralph Nader (; born February 27, 1934) is an American political activist, author, lecturer, and attorney noted for his involvement in consumer protection, environmentalism, and government reform causes. The son of Lebanese immigrants to the Un ...

attended a meeting with the

, at which Nader clashed with members of the caucus over his presidential bid. After the meeting, Nader alleged that Watt twice uttered an "obscene racial epithet" towards him. It was alleged that Watt said: "You're just another arrogant white man — telling us what we can do — it's all about your ego — another fucking arrogant white man." Although Nader (who is of Lebanese descent) wrote a letter to the Caucus and to Watt asking for an apology, none was offered.

Opposition to Federal Reserve auditing

In 2009, fellow congressman

Ron Paul Ronald Ernest Paul (born August 20, 1935) is an American author, activist, physician and retired politician who served as the U.S. representative for Texas's 22nd congressional district from 1976 to 1977 and again from 1979 to 1985, as well ...

reported to Bloomberg that while Paul's bill

HR 1207 The Federal Reserve Transparency Act of 2015 () was a bill introduced in the U.S. House of Representatives of the 114th United States Congress by Congressman Thomas Massie ( KY-4). It included proposals for a reformed audit of the Federal Reser ...

, which mandates an audit of the

Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...

, was in subcommittee, Watt had substantially altered the substance of the bill, a move which had "gutted" the bill's protections. According to Bloomberg News, on October 20, 2009, "The bill, with 308 co-sponsors, has been stripped of provisions that would remove Fed exemptions from audits of transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the

Federal Open Market Committee The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System (the Fed), is charged under United States law with overseeing the nation's open market operations (e.g., the Fed's buying and selling of United States Treasur ...

(FOMC) and communications between the Board, the reserve banks and staff, Paul said today." Paul said there is "nothing left" in the bill after Watt's actions. Paul responded when he and

Alan Grayson Alan Mark Grayson (born March 13, 1958) is an American politician who served as the U.S. representative for from 2009 to 2011 and from 2013 to 2017. A member of the Democratic Party, he was defeated for reelection in 2010 by Republican Daniel ...

Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...

passed a competing amendment hours before the bill cleared the

House Financial Services Committee The United States House Committee on Financial Services, also referred to as the House Banking Committee and previously known as the Committee on Banking and Currency, is the committee of the United States House of Representatives that oversees t ...

to restore the bill's original language and undo Watt's attempts to weaken its effects. Watt won support from Chairman

Barney Frank Barnett Frank (born March 31, 1940) is a former American politician. He served as a member of the U.S. House of Representatives from Massachusetts from 1981 to 2013. A Democrat, Frank served as chairman of the House Financial Services Committee ...

Massachusetts Massachusetts (Massachusett language, Massachusett: ''Muhsachuweesut assachusett writing systems, məhswatʃəwiːsət'' English: , ), officially the Commonwealth of Massachusetts, is the most populous U.S. state, state in the New England ...

and the

, both of which backed his amendment. Eight of the ten Black Caucus members on the committee voted against the Paul-Grayson amendment. Watt and Frank voted to inhibit the bill's approval. With pressure from the Congressional Black Caucus to delay consideration of the bill by the full House of Representatives, it is unclear when HR 1207 will face a final vote. The country's largest bank

Bank of America The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...

is headquartered in Charlotte in Watt's congressional district and has threatened to leave. The

Sunlight Foundation The Sunlight Foundation was an American 501(c)(3) nonpartisan, nonprofit organization that advocated for open government. The organization was founded in April 2006 with the goal of increasing transparency and accountability in the United States ...

reported that 45% of Watt's campaign contributions for 2009 are from corporations in the real estate, insurance and finance industries, the seventh-highest percentage of any member of Congress. Watt's largest contributors included

American Express American Express Company (Amex) is an American multinational corporation specialized in payment card services headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was found ...

Wachovia Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo and Company in 2008, Wachovia was the fourth-largest bank holding company in the United States, based on total asse ...

, Bank of America and the

American Bankers Association The American Bankers Association (ABA) is a Washington, D.C.-based trade association for the U.S. banking industry, founded in 1875. They lobby for banks of all sizes and charters, including community banks, regional and money center banks, sav ...

Support of SOPA

Congressman Watt ardently supports the

, stating that it is "beyond troubling to hear hyperbolic charges that this bill will open the floodgates to government censorship".

Ethics investigation

Congressman Watt was formally investigated by the

Office of Congressional Ethics The Office of Congressional Ethics (OCE), established by the U.S. House of Representatives in March 2008, is a nonpartisan, independent entity charged with reviewing allegations of misconduct against members of the House of Representatives and the ...

over a series of fundraising events he was involved in. On December 9, 2009 Watt held a fundraiser and soon after withdrew a proposal he had introduced to subject auto dealers to more stringent regulations. The fundraiser brought donors mainly from large finance companies such as

Goldman Sachs Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...

. Watt was later cleared of charges or wrongdoing. In what the nonpartisan Citizens for Responsibility and Ethics in Washington (CREW) called "disgraceful", Watt introduced legislation to slash funding for the Office of Congressional Ethics.

Racial gerrymandering

In 1993, the design of his district was challenged as an instance of racial

gerrymandering In representative democracies, gerrymandering (, originally ) is the political manipulation of electoral district boundaries with the intent to create undue advantage for a party, group, or socioeconomic class within the constituency. The m ...

. The Supreme Court held in ''

'' that the unusual shape of the district required strict scrutiny of its racial purpose. Although it is rare for a law to survive strict scrutiny, the districting plan was upheld on remand as "narrowly tailored to further the state's compelling interest in complying with the

Voting Rights Act The suffrage, Voting Rights Act of 1965 is a landmark piece of Federal government of the United States, federal legislation in the United States that prohibits racial discrimination in voting. It was signed into law by President of the United ...

Political campaigns

In 1992, Watt was elected to the U.S. House of Representatives from North Carolina's newly created 12th Congressional District and became one of only two

African American African Americans (also referred to as Black Americans and Afro-Americans) are an ethnic group consisting of Americans with partial or total ancestry from sub-Saharan Africa. The term "African American" generally denotes descendants of ens ...

members elected to Congress from North Carolina in the 20th century, the other being Eva M. Clayton.

Recent election results

2010

2012

References

External links

* *
C-SPAN ''Q&A'' interview with Watt
February 20, 2005 * , - , - , - {{DEFAULTSORT:Watt, Mel 1945 births 21st-century American politicians African-American lawyers American lawyers African-American members of the United States House of Representatives African-American state legislators in North Carolina American Presbyterians Democratic Party members of the United States House of Representatives from North Carolina Living people Democratic Party North Carolina state senators People from Mecklenburg County, North Carolina UNC Kenan–Flagler Business School alumni Yale Law School alumni 21st-century African-American politicians 20th-century African-American people