Banking Law

Preston Jumps From The Frying Pan Into The Fire

Steve Preston, a man credited with turning around (or failing to turn around, depending on your partisan agenda) the SBA, has been tagged to do the same for an Alphonso-less HUD.

President Bush on Friday nominated Steve Preston, now head of the Small Business Administration, to take over the Department of Housing and Urban Development.

[...]

At HUD, Preston would face a turnaround mission similar to the one he faced when he took over the SBA in July 2006, when the SBA was swamped by huge backlogs in processing disaster loan requests following Hurricane Katrina. Preston, a former corporate executive with ServiceMaster Co. and First Data Corp., revamped the SBA's disaster loan program and received mostly good marks for improving the agency's processes and employee morale.

Interestingly, while Democrat gassbag Representative Nydia Velazquez of New York griped about what a horrible job Steverino did at the SBA, full-time Senator and part-time cigar store Indian John Kerry heaped praise upon his performance, notwithstanding their "policy differences." Unfortunately for Preston, that Mexican standoff on the Democrat side of the aisle was torpedoed by an unexpected calamity: Preston received a ringing endorsement from our Decider-in-Chief.

At HUD, Bush said he "looked for a leader with an impressive background in finance," a reformer, and a "consensus-builder ... who can get things done."

"Steve Preston is an experienced manager who knows what to do," Bush said. "He knows how to tackle a problem, devise a solution and get results."

Bet Bush wishes he'd had Steve in charge of the Defense Department in 2003.

In addition to widespread public dissatisfaction with the President's job performance, you have the additional burden of the fact that Bush appointed Alphonso, then stood behind him through a widening scandal of alleged cronyism and a foot-in-the-mouth marathon by the beleaguered Jackson. That certainly makes heaping praise on Preston a double-edged sword. And as a fitting grace note to Preston's appointment ceremony, Bush lavished praise on the former HUD chief.

"I know him well, he's a decent man, a dedicated man, and he's a compassionate man," Bush said. "He's worked tirelessly at HUD to help America's homeowners."

"America is a better place because of your service," he told Jackson. "I wish you and Marcia all the best as you head back to Texas -- I'll be right behind you."

Not a moment too soon, Mr. President, although some of us are not exactly doing cartwheels at the prospects of any of your three most likely successors assuming your mantle.

UPDATE I: Paul Jackson at Housing Wire predicts smooth sailing for Preston's confirmation.

Full post as published by Bank Lawyers Blog on April 18, 2008 (boomark / email).