“I need to make some money,” former Rep. Barney Frank (D-MA) informed the Monetary Instances whereas defending his position as a board member of Signature Financial institution, which was shut down by New York state regulators on Sunday.
Frank had no regrets over his position on Signature Financial institution’s board of administrators, reported the Monetary Instances. He stated:
I labored as a member of Congress for a sure goal. After which having retired, not having a pension by my selection, not eager to be a lobbyist for causes private, I must make some cash.
I do it partly by writing. However I additionally do it by becoming a member of boards. Logically, I’m requested to hitch boards on topics with which I used to be recognized.
The previous congressman stated the U.S. banking system is in “very good shape,” partially crediting the Dodd-Frank Act with what he stated was the business’s present state of well-being.
A lady leaves a department of Signature Financial institution in New York, Monday, March 13, 2023. President Joe Biden is telling Individuals that the nation’s monetary techniques are sound. This comes after the swift and beautiful collapse of two banks that prompted fears of a broader upheaval. (AP Photograph/Seth Wenig)
The Monetary Instances reported that Frank expressed disappointment with Signature Financial institution’s closure and was “chagrined because obviously people will say, ‘Oh, hey mister, you told everybody else how to run a bank and the bank you were helping run failed.’”
Signature Financial institution’s on-line profile of Frank highlights his former position as chairman of the Home Monetary Companies Committee from 2007-2011 as skilled bona fides. It heralds his conduct as a legislator:
As Chair of the Home Monetary Companies Committee, Mr. Frank was instrumental in crafting the short-term $550 billion rescue plan in response to the nation’s 2008-2009 monetary disaster. Later, he cosponsored the Dodd-Frank Wall Avenue Reform and Shopper Safety Act, which was signed into regulation in July 2010.
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Mr. Frank’s intensive expertise as a Congressman, and notably as Chair of the Home Monetary Companies Committee, led the Board to conclude that he must be a member of the Board.
Moody’s Investor Service, a credit standing enterprise that markets itself as a reputable monetary analysis agency, downgraded its ranking of America’s banking system to “negative” from “stable” in a report on Monday. It warned of an present danger of financial institution runs at U.S. banks with substantial unrealized losses.
Observe Robert Kraychik on Twitter @rkraychik.
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