Barney Frank backing away from fed?bloomberg what does that mean?why now?Submitted by thomas-francis2012 on Sat, 03/21/2009 - 22:42
Fed’s Expanded Regulatory Role in Doubt as Frank Backs Away
By Alison Vekshin
March 21 (Bloomberg) -- A proposal to put the Federal Reserve in charge of market oversight is losing congressional support after its main backer, Barney Frank, said criticism over American International Group Inc. “undercuts” his proposal.
“There’s still a need for a systemic-risk regulator,” Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, said yesterday. “The argument for the Fed alone has lost a lot of political support. I think that’s now got to be re-looked at.”
Senate Banking Committee Chairman Christopher Dodd and Richard Shelby, the panel’s top Republican, said March 19 they are reluctant to expand the Fed’s role, faulting the central bank for lapses leading to the financial crisis.