When John McCain suggested the creation of a bipartisan commission to investigate the reasons behind the recent credit crash, and to recommend a new regulatory regime, Barack Obama said he was passing the buck. Now Barney Frank — Chairman of the House Banking Committee — says he believes Congress will create a committee to study the crisis and recommend fixes:
Lawmakers waded gingerly Tuesday into a complex debate over how to overhaul the regulatory structure overseeing the U.S. financial system, promising stricter rules governing risky financial products that are seen as responsible for the current financial crisis. It may also involve the creation of a special committee to draft the upcoming regulatory overhaul, said House Financial Services Committee Chairman Barney Frank, D-Mass. The question of a special committee was but one topic as the panel kicked off what promises to be a long, complex debate into how to avoid a repeat of the current financial mess, which has its roots in excesses in the subprime mortgage market and rapidly eroding value of widely held mortgage-backed financial products. Democrats controlling Congress have expansive, albeit vague, plans to extensively strengthen the current regulatory framework.
No doubt we’ll soon see a response from Senator Obama, chiding Congressman Frank for his failure to provide real leadership.
