Catherine Austin Fitts
Catherine Austin Fitts | |
|---|---|
| Born | December 24, 1950 Philadelphia, Pennsylvania, U.S. |
| Occupation(s) | Investment banker, public official, author |
| Known for | Managing director at Dillon, Read & Co.; United States Assistant Secretary of Housing and Urban Development for Housing; investigations into public spending and government fraud |
Catherine Austin Fitts (born December 24, 1950) is a former American public official and investment banker who held the position of managing director at Dillon, Read & Co. and served as the United States Assistant Secretary of Housing and Urban Development for Housing during the Presidency of George H.W. Bush. She has authored numerous works focusing on public spending and claims of extensive governmental fraud.
Early life and education
Fitts was born in Philadelphia, Pennsylvania. She obtained an AA degree from Bennett College in 1970, followed by a BA in history from the University of Pennsylvania in 1974.[1] After a brief period working as a bartender, she was encouraged by a Wharton School admissions official to pursue further education.[2] Subsequently, she earned her MBA from Wharton in 1978.[2]
Dillon, Read & Co.
Following her graduate studies, Fitts joined Dillon, Read & Co.[2] In 1982, she engineered an innovative municipal bond issuance that generated billions for the New York Subway System, marking the first time public agency bonds were secured by rider fares.[3] By 1986, she became the first female managing director in the firm’s 156-year history.[2] During this period, Businessweek described her as "Wall Street's foremost champion" of bonds issued by public utilities.[2]
U.S. Department of Housing and Urban Development (HUD)
In the course of the 1988 United States presidential election, Fitts contributed to George H. W. Bush's campaign and was subsequently appointed Assistant Secretary for Housing at HUD under the Bush administration. Her mandate included rehabilitating the department’s image following the savings and loan crisis. Upon assuming office, she highlighted that HUD managed a $300 billion mortgage insurance portfolio but employed only one certified actuary.<ref> Among her reforms was the policy to sell government-foreclosed properties at a 50% discount to nonprofit organizations for rental use, replacing the prior approach that sought to maximize sale prices—an approach that had resulted in expensive real estate surpluses and housing shortages in densely populated areas.<ref>
Fitts resigned in 1990 amid reports of tension with HUD Secretary Jack Kemp, which he publicly denied. Her exit prompted criticism directed at Kemp; she was regarded as one of his most effective managers.<ref> After leaving HUD, she declined an offer to join the Federal Reserve Board of Governors, opting instead to return to private enterprise.<ref>
Hamilton Securities and Solari
Post-government service, Fitts established Hamilton Securities, an employee-owned brokerage firm which she led until 1998. In 1993, Hamilton Securities secured a contract with HUD to oversee its $500 billion investment portfolio. During this period, Fitts created a location-based software system for mortgage debt resale that potentially boosted departmental revenues by several hundred million dollars.
In 1997, HUD terminated Hamilton’s contract citing accounting discrepancies connected to the software; subsequent inquiries were conducted by the HUD Inspector General, FBI, and Securities and Exchange Commission. Fitts maintained that these investigations were retaliatory actions after Community Wizard data revealed possibly fraudulent federally guaranteed mortgage securities. A government contractor accused Hamilton Securities of insider trading and bid rigging, alleging preferential treatment in securing HUD business. The investigation concluded in 2002 without uncovering any evidence of misconduct.
Between 1996 and 1997, Fitts participated in the Global Business Network's "Worldview" initiative and later served on The Arlington Institute's advisory board from 1998 through 2000.
Writing and commentary
Fitts has conducted in-depth investigations into government expenditures. In a 2004 article featured in World Affairs: The Journal of International Issues, she provided evidence indicating the substantial illicit redirection of national assets into secretive, unaccountable initiatives, encompassing covert operations and hidden military research and development. She maintained that public agencies have been compromised by private interests, often to the detriment of the public welfare.
In 2017, Fitts collaborated with Michigan State University economist Mark Skidmore to produce a report revealing $21 trillion in "unauthorized spending" by the U.S. Department of Defense and the U.S. Department of Housing and Urban Development over a span of 17 years.
Fitts asserts that HUD’s primary economic objectives are overshadowed by its function as a financial conduit for military and intelligence entities via intricate securities arrangements involving HUD-supported Ginnie Mae investments. She claims that HUD inflates costs for public housing renovations and channels surplus funds into unmonitored black budget programs administered by national security organizations.
During the 2016 United States presidential race, Fitts endorsed Donald Trump’s candidacy. On December 8, 2020, Trump retweeted one of her posts linking to an article on Breitbart. Her political contributions have extended across party lines, including donations to Democrats Cynthia McKinney and Marcy Kaptur, as well as Republicans Rand Paul and Thomas Massie.
According to The Washington Post, throughout the COVID-19 crisis, Fitts partnered with anti-vaccine advocate Robert F. Kennedy Jr., promoting baseless claims about the pandemic and opposing lockdown protocols. She featured in the 2020 documentary Planet Lockdown, which The Washington Post identified as disseminating misleading pandemic information. Additionally, Fitts has appeared in alternative media interviews alleging fraud within the U.S. central banking system ("21 trillion dollars have been stolen") and persistent electoral fraud in U.S. elections prior to 2020.