I knew this would happen but I'm delighted and relieved to see this reported. I respect and admire Barney Frank's work as much as anyone In the House. I'm sure he's realized his part in the Bailout approval was not his finest hour.
Not content to change the subject or try to "spin" what turned out to be a big freaking waste of money, he's quietly at work trying to fix it:
Frank, D-Mass., said in a Capitol Hill press briefing that he and other congressional leaders have been working closely with the incoming Obama administration on plans to shift the focus of the government's $700 billion financial bailout.
Frank said in a statement Friday that his legislation, due to be introduced this afternoon, "will strengthen accountability, close loopholes, increase transparency, and require Treasury to take significant steps on foreclosure mitigation."
Link: http://money.cnn.com/...
Nice words, but how? Take control over what's left:
According to Frank's statement, the plan calls for the Treasury Secretary to develop a plan to reduce foreclosures by March 15, and to spend at least $50 billion on that plan starting April 1. Frank told reporters Friday afternoon that the foreclosure relief could range between $40 billion and $100 billion.
That's not an additional $50 billion; that comes from the $700B that's already been extracted from us.
To me this is the most important piece I want to see:
Among other things, the Frank plan would force companies receiving TARP funds to account for how they use the money.
It's inexplicable that this wasn't the requirement from the start. As Rachel Maddow points out the only responsibility of TARP recipients is to complete a 2-page form.
Finally, no man is an island and here's what the Obama team wants to be included in the overhaul:
Allowing bailout money to be used to help some homeowners facing foreclosure;
Freeing up the credit markets for loans to people, local governments and small businesses;
Having the government take more stake in financial firms by putting more money into them. In exchange, there would be greater limits on CEO compensation and more taxpayer protections.
Consider creating a new bureau within Treasury for the bailout. Its goal would be to ensure greater oversight and better management.
If there's anyone with the dedication to try to take this clusterfuck lemon and extract some lemonade, it's Barney Frank.