US Congressman Barney Frank calls for new policies to help stabilize the housing market and address the current economic downturn
US Congressman Barney Frank, chair of the House Financial Services Committee, has called for a number of new policy options to help stabilize the housing market and address the current economic downturn.
During a speech to the Greater Boston Chamber of Commerce, Frank called for Congress to consider the following:
• Establishing a “Financial Services Risk Regulator” that has the capacity and power to assess risk across financial markets regardless of corporate form and to intervene when appropriate.
• Reforming the regulatory system to consolidate the duplicative regulatory structure.
• Reassessing the nature of ‘capital’ itself. He said: ‘This crisis has illustrated that seemingly well-capitalized institutions can be frozen when liquidity runs dry and particular assets lose favor.’
• Pledge to monitor auction rate securities and municipal bond markets.
• Legislating to provide at least $10bn in loans to states to address the foreclosure crisis; and to expand the FHA loan program to offer guarantees to refinance at-risk borrowers into viable mortgages.