“Frank” Views On Regulatory Reform

By Courtney Ann Jackson-Talk Radio News Service

U.S. Representative Barney Frank (D-Mass.) called Monday for the need for financial regulation enforcement.

Frank, the Chairman of the House Committee on Financial Services, issued remarks at a luncheon held at the National Press Club.

“We need to regulate for normal human beings and that’s what we hope to do. We think it’s important for there to be both regulatory structures that provide focused responsibility for the right kind of regulation and the appointment of individuals to do it,” said Frank.

Frank’s committee released a list of elements needed for regulatory reform. The list calls for a systemic risk regulator to identify and react to risks which arise from entities or activities that have the potential to jeopardize the financial system as a whole.

Frank also focused on consumer protection. His committee would like to propose a separate Consumer Financial Protection Agency for this purpose.

Said the Congressman, “I believe we can protect consumers from abuses without endangering the system…I invite the judgement of failure if we are not able to deliver that, and I will tell you I am not politically inclined to take on responsibility I don’t think I can handle.”

Frank believes that a legislative package with these things included will be presented by the end of the year.

In addition, Frank implored his committee to address issues such as securitization market accountability, an end to regulatory arbitrage in domestic and international markets, and the tightening of derivative regulations.