Hoyer: Financial Regulation Legislation to Hit House Floor Next Month
New, tougher regulations on the financial sector should be ready for a vote on the House floor by next month, Rep. Steny Hoyer (D-Md.) said during his weekly briefing this afternoon, The Post's Ben Pershing reports.
Hoyer said that he expects House Financial Services Chairman Rep. Barney Frank (D-Mass.) to mark up the legislation this month. As House majority leader, Hoyer controls the schedule, so he should know.
"Chairman Frank is moving ahead with hearings," Hoyer said.
Frank believes in limiting securitization of debt, which he sees as one of the roots of the crisis. Fannie and Freddie securitized subprime and other risky mortgages so when they failed, Fannie and Freddie -- the taxpayer -- were on the hook for them.
Other forms of securitization, such as derivatives, fanned the flames of the crisis because the people who sold them were not on the hook for potential losses -- they just mailed the risk off into a black hole and forgot about it.
Regulatory reform also may include the creation of a consumer financial protection agency proposed by President Obama that would help regular folks understand the fine print on loan and credit card applications and so forth.
-- Frank Ahrens
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October 6, 2009; 1:03 PM ET
Categories: The Ticker | Tags: Barney Frank, Steny Hoyer, regulatory reform
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