Video archive of the US Congress

House Proceeding 12-11-09 on Dec 11th, 2009 :: 0:15:55 to 0:20:35
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Barney Frank

0:15:51 to 0:16:12( Edit History Discussion )

Barney Frank: protect consumers but make sure we are not distracting from the world of business in terms of commerce and banking in the yield back the balance of my time. the chair: the gentleman yields. the gentleman from massachusetts is recognized. . mr. frank: one of the speakers, maybe the gentleman from oklahoma said we don't need a

Barney Frank

0:15:55 to 0:20:35( Edit History Discussion )
Speech By: Barney Frank

Barney Frank

0:16:13 to 0:16:34( Edit History Discussion )

Barney Frank: new agency. well, you probably didn't get too far into the bill. the line 7 through 10 of page one ere is hereby established a consumer financial protection council as an independent establishment of the executive branch. so it creates a new agency. a monstrous

Barney Frank

0:16:35 to 0:16:55( Edit History Discussion )

Barney Frank: a 12-headed council. which will have its own staff assigned under this amendment by treasury. and then agencies a new position is created, a director of consumer affairs. so you have 12 new positions, staffed by the treasury with no limitations on how that's done,

Barney Frank

0:16:56 to 0:17:16( Edit History Discussion )

Barney Frank: and this new council. it is also unwieldy. one of the responsibilities of the consumer agency wi be to issue rules to prevent the kind of abusive mortgage that is had such a contributing role in our cris. this bill says yes. there will beuch rules. they'll be adopted by the 12-member co

Barney Frank

0:17:17 to 0:17:39( Edit History Discussion )

Barney Frank: they will vote on those. the chairman of the commodities futures trading commission will have a vote on setting mortgage rates. the chairman of the securities and exchange commission will help set mortgage rates. other agencies without any particular involvement there will help set mortgage rates.

Barney Frank

0:17:40 to 0:18:01( Edit History Discussion )

Barney Frank: now, the 12 agencies up this bureaucratic version of the christmas song will the agency that has more responsibility for consumer regulation today than the other, the federal reserve system. those who have said we don't like what the federal reserve

Barney Frank

0:18:02 to 0:18:22( Edit History Discussion )

Barney Frank: does should understand, the largest single loser of authority by far in the bill that the committee has brought forward is the federal reserve. the federal reserve has been the primary consumer regulator, under this bill it still will be. under this amendment. the all its powers because you have the council but you also have much of this conby -- done by

Barney Frank

0:18:44 to 0:19:05( Edit History Discussion )

Barney Frank: until we get to going to be supportive of this bill. i understand they have a problem with that. but much of the problem we have today is in the nonbanks. the mortgages issued outside of banks. the payday lders, check cashers, the people who do lending. we give specific authority to regulate.

Barney Frank

0:19:06 to 0:19:26( Edit History Discussion )

Barney Frank: what this says is status quo is fine with regard to that. the jurisdiction over it. it hasn't been well. so if you want to do something about payday lenders and check cashers and remittances, then you want to vote for the committee version and not for this 12-member amendment, maybe some of the new consumer

Barney Frank

0:19:27 to 0:19:47( Edit History Discussion )

Barney Frank: directors in each of the 12 agencies will work this out. but you have to wait for this 12-member body to vote on these things. do i want to address one particular issue which is, what about safety and soundness? the notion that adequate consumer protection somehow detracts from safety and soundness is at the heart of some of our disagreement.

Barney Frank

0:19:48 to 0:20:11( Edit History Discussion )

Barney Frank: what they are in effect saying, we'll have to water down consumer proterks. if you get somebody who takes it seriously, it might impinge on safety and soundness t has been the absence that has caused the problems. it was the refusal of the federal reserve whose authority is preserved by the amendment by the gentleman from idaho, they were given the

Barney Frank

0:20:12 to 0:20:32( Edit History Discussion )

Barney Frank: by the congress, and flatly refused to use it. because they would not do consumer frokes, safety and soundness suffered. it didn't thrive. there are other examples. a failure adequately to protect people in the credit card area contributes to problems. it does not diminish them. so the argument is very, very clr. it's true, by the way, the federal reserve began after we

Barney Frank

0:20:33 to 0:20:37( Edit History Discussion )

Barney Frank: started talking about this bill, but the notion that you

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