Barney Frank on Dysfunction in Congress: 'Blame James Madison'

[alp227]

Run time: 09:00 https://www.youtube.com/watch?v=0sMS5FApKiA   Posted on YouTube: December 02, 2011 By YouTube Member: PBSNewsHour Views on YouTube: 456   Posted on DU: December 03, 2011 By DU Member: alp227 Views on DU: 1579

 
Massachusetts Rep. Barney Frank announced this week that he would not seek re-election next year after more than four decades in politics. Judy Woodruff and Frank discuss his legacy, his decision to retire, the U.S. housing crisis, Europe's ongoing debt problems, and dysfunction in Congress and the U.S. political system. (Transcript)

Excerpts:

FRANK: I think the ability to effect public policy from inside the Congress is now constrained by the political atmosphere. I don't intend to walk away from my advocacy of the kind of public policy I think is important. I do think, at this point, where I can be more useful is in trying to change the political atmosphere, in trying to help mobilize the kind of political pressure that is needed, because, essentially, what we have is the American people, under the American Constitution, have used their freedom to elect one set of people in 2008 and a different set in 2010.

Most countries don't have that. They don't have these overlapping electoral terms. And so I intend to do more from the outside. Now, I'm more comfortable as an inside player. I think I'm a better legislator and candidate. But I think advocacy is important.

Having said that, Judy, there is an extraordinary situation now where I do think we have a chance to make some progress by the fact that inertia is now a progressive force. Up until now, it's been very frustrating for those of us who want to see some constructive activity, because you had a very conservative Republican majority that was ready to say no to everything.

FRANK: In America, unlike England, unlike Israel, unlike Japan, other democracies, we have elections that have staggered terms. So you have a president elected by the American people in 2008 and then a Congress elected by the American people in 2010 diametrically opposed to him. And the people are a part of this equation.

JUDY WOODRUFF: Well, let's talk about Barney Franks' legacy, or at least part of it, the Dodd-Frank financial regulatory -- law, now law. Clearly, it has its detractors. It has people who say it's the right way to go.

But, Barney Frank, for you, how do you see -- what do you think that, for ordinary Americans, this law can make the most difference?

REP. BARNEY FRANK: Well, first, we did a great breakthrough.

Until the bill was signed by the president, if you had a problem with the financial institution, if you, as a consumer, felt you had been unfairly treated, your recourse was to the very regulators that are in charge of the financial institutions, who inevitably are going to have a bias towards them.

So we set up -- we passed the strongest single piece of consumer legislation in American history, the Independent Consumer Financial Protection Bureau, that Elizabeth Warren helped design. And I'm very proud -- and she gives me credit, which I will take -- for being the major proponent of that, along with her. And so that's a very important piece.

Secondly, we took a number of actions that are going to prevent the kind -- not prevent, but severely diminish the likelihood of another crash. People are not going to be able to make loans and then walk away from the loans. They're going to have to have some responsibility for the loans they made.

Derivatives, which were such a terrible instrument when they were totally unregulated, will now be regulated. We made illegal the granting of mortgages by anybody to people who shouldn't be getting the mortgages. And, finally, with regard, again, back to individuals, we significantly increased the responsibility that investors have to people.

JUDY WOODRUFF: The housing crisis, something very important to you, still more than a quarter of American mortgages -- Americans who live in a house and have a mortgage are underwater. What is the most important thing that you think needs to be done about...

REP. BARNEY FRANK: Well, Judy, you know, I know you have a limited time. A brief answer to the housing crisis is, frankly, going to be hard to -- hard to do.

What -- one of the things I want to do is of course increase the extent to which we -- rental housing for lower-income people, so that we don't push people, inappropriate home ownership. With regard to the people who are now underwater, I'm somewhat frustrated.

We did get legislation through that gave the Obama administration the power to help people who are unemployed. They didn't use it nearly as much. And that would have been done well.

[earcandle]

1. Levy the income tax revenues compulsory tax without favor, which is the law and congresses job.

[midnight]

2. I'll help with that housing issue... Take back the Tarp money and allocate

it to the people... that is what is was suppose to do in the first place, and not be used to lavish on the already wealthy, and their foreign banker partners...