Rep. Frank Calls Out Financial Services Committee Republicans

This morning, the House Financial Services Committee took up the issue of executive compensation in the private sector, an area where perverse incentives have led to more and more risk-taking.  Republicans on the Committee, led by Ranking Member Spencer Bachus attempted to take attention off of the private sector and put it on Fannie Mae and Freddie Mac, arguing that real executive compensation reform would need to start there, and not at the private level.

Chairman Barney Frank quickly pointed out that Democrats had twice introduced legislation to curb excessive pay at Fannie and Freddie, and that in both instances, Republicans had voted against it.

As Frank put it, "we have here an embarrassment on the part of my Republican colleagues, because they don't want to do anything about the excessive pay in the private sector, nor do they want to appear to not be doing anything about it, so they're changing the subject."