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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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By Frank Ahrens  |  October 6, 2009; 1:03 PM ET
Categories:  The Ticker  | Tags: Barney Frank, Steny Hoyer, regulatory reform  
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Comments

New reg. Buy a GM or lose everything. Digging a hole is a job where you start at the top. Another stimulus is planned to blow more bubbles. The Saturn dealers are screwed, so your Saturn is worth less. Maybe they will offer cash for Saturns next to get things moving. We can recycle polymer bodies and keep busy blowing up engines and scrapping tranny-axles to keep ahead of the curve.

Posted by: Dermitt | October 6, 2009 3:05 PM | Report abuse

Change happens faster than regulation. That's why you campaign using "change" instead of promising regulations. Regulation always falls behind. Regulation can slow change and then getting things from the lab into operations is even slower. You can change the regulations and then some other change happens and the regulations need changed. At the pace we are going we'll have all regulation and no business. We'll need to regulate the regulations, so we'll need more legislation to understand the regulations and nobody reads much of the legislation. Then on top of this, the libraries are closing. Maybe we can ruin books and all read regulations and legislation for the sheer joy of it.

Posted by: Dermitt | October 6, 2009 6:45 PM | Report abuse

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