Barney Frank admits 'mistake' in Dodd-Frank

Barney Frank admits 'mistake' in Dodd-Frank
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Former Rep. Barney Frank (D-Mass.) said on Sunday that his namesake banking regulation bill Dodd-Frank should have been more lenient towards smaller banks.

In a radio interview with John Catsimatidis, Frank said that the asset threshold for “extra supervision” of banks should have been set higher.  

“We put in there that banks got the extra supervision if they were $50 billion in assets,” he said. “That was a mistake. We should have made it much higher, $125 billion or more, and we should have indexed it.”

But Frank maintained that the bill had helped eliminate some of the more risky behavior involving larger banks and included provisions that went to great lengths to help consumers.

“On the other hand I don’t want to … weaken what we call the Consumer Financial Protection Bureau,” he said, citing the agency’s actions against Wells Fargo over bank’s widespread creation of fraudulent accounts.

“I think the Consumer Financial Protection Bureau, which protected people against credit card abuses, it saved the average consumer a lot of money — I don’t understand what people think is the problem there," he said.

Frank also said it would be interesting to see how Congress reacts towards President-elect Donald TrumpDonald John TrumpThe Hill's Campaign Report: Democratic field begins to shrink ahead of critical stretch To ward off recession, Trump should keep his mouth and smartphone shut Trump: 'Who is our bigger enemy,' Fed chief or Chinese leader? MORE’s spending plans, which he says may increase the deficit.

“So I’m gonna be watching to see whether the two sides switch positions on the deficit, and whether the Republicans become much less worried about it now that it’s Donald Trump’s deficit, and the Democrats become much more critical now that it’s not Barack ObamaBarack Hussein ObamaDemocratic governors fizzle in presidential race Obamas reportedly buying Martha's Vineyard mansion Trump has 62 percent disapproval rating in new AP poll MORE’s.”