Barney Frank endorses consumer agency concept

House Financial Services Chairman Barney Frank, Democrat from Newton, has come out for a new government agency protecting consumers from subprime mortgages and other high-risk financial products.

Frank said today that his committee will consider legislation in July that would create such an agency, as the Obama administration has proposed. The Massachusetts Democrat said criticism that the organization would be too burdensome to industry is unfounded.

Republicans and industry groups disagree. They have said there already are enough regulators policing the market and that they need to be held accountable. (AP)