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Sunday, November 22, 
12:11 am

Rep. Frank to hold hearings on mortgage mess

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  Rep. Barney Frank
House Financial Services Chairman Barney Frank said Monday he has scheduled to hold a hearing Sept. 5 to examine the impact of the subprime mortgage crisis on credit availability and whether any additional oversight of the industry is necessary. The Massachusetts Democrat previously indicated that additional hedge fund regulation may be necessary. He has also expressed concern about the sale of mortgage products to a secondary market that is not closely scrutinized by federal and state regulators. Frank argues that this secondary market is the key reason why mortgage companies offered imprudent loans. Senate Banking Committee Chairman Christopher Dodd plans also to hold hearings on this issue and whether credit rating agencies hold some blame. Recently, a herd of mortgage lenders have filed for bankruptcy. —Ron Orol

See story from Reuters via WashingtonPost.com
See related story about Dodd from TheDeal.com
See related post about Countrywide
See story about bankrupt American Home Mortgage from TheDeal.com
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See story about Aegis from TheDeal.com

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Comments

From: E. David Zotter,

I observed Barney Frank on CNBC's On-The-Money recently.

It is quite clear that he was entirely confused about basic economics. This is what happens when someone else writes your speaking notes and editorials.

I was thrilled to see Melissa Francis call into question this buffoonery.

If one is to introduce legislation, speaking intelligently on a topic is a good first step. Perhaps Barney Frank should become educated on the mortgage and hedge fund markets before he embarrasses himself again.

What poor form! I expect more from the House Financial Services Chairman ….

Krgrds,
E. David Zotter


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