WASHINGTON — House Financial Services Committee Ranking Member Barney Frank (D-Mass.) explained to credit union officials that, while money is important in elections, votes trump it every time.
"You are exhibit A of that argument…" he stated. "Your strength is in your members."
Frank said that as a liberal Democrat, people believe he must be anti-business, which he denied. "The private sector is the way we will build wealth in this country," he said, but first the wage gap needs to be reined in. Corporate profits as a percentage of the economy have risen while wages as a percentage have dropped, he said. "Not having this gap in wages is important both socially and economically," Frank emphasized.
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"One of the best things you can do is get these lowest income people to become members of your credit union," Frank, who is optimistic about being the next chairman of the committee, said. He offered support for regulatory flexibility and, if facing Community Reinvestment Act-like requirements, said, "There's not a credit union in Massachusetts that wouldn't get very high marks."
However, his priorities would be different than those that have ruled the committee over the last 12 years the Republicans have been in control even though the committee has worked in a fairly bipartisan manner. Key issues he would like to see addressed as chairman included a predatory lending bill, data privacy, and greater equality in mortgage lending. Oversight on federal preemptions of state consumer protection laws at the banking agencies, wages, and international poverty would also be key matters of debate.
Frank said a bill to reform the government-sponsored enterprises is possible during the lame duck session after elections, but he does not see it getting done before.
Frank called the Credit Union Regulatory Improvements Act "very controversial" and, on the heels of a regulatory relief bill this Congress, under his possible chairmanship, he said, "It's rarely a good idea to follow one significant change with another within a few months, even a year…I think if we can get some of this stuff done, there will be a strong argument for waiting a couple years to deal with it." –[email protected]
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