WASHINGTON – Today, 19 members of the House Financial Services Committee, led by Congressman McCarthy, requested that Chairman Barney Frank conduct an oversight hearing on the Friends of Angelo loan scandal.  The Financial Services members sent Chairman Frank a letter calling on the Committee to “examine the validity of these allegations and the extent to which the Friends of Angelo program may affect ongoing policy negotiations” because “it would be irresponsible to move forward on a massive housing bill until certain questions are answered regarding the Friends of Angelo program.” (see attached letter)

Congressman McCarthy released the following statement:

“The old ways of a broken Washington tell Congress to just sweep this potential special interest scandal under the rug, and instead pass a $300 billion bill, financed by Americans working hard to pay their mortgage, which could benefit those same special interests. Our nation deserves better. So, I ask the Chairman to join the nineteen members of the Financial Services Committee and utilize responsible oversight hearings to strengthen accountability in Congress and ensure that the public can be confident of any mortgage legislation passed by the House.”

NOTE: Today’s Washington Post reports “A key provision of the housing bill now awaiting action in the Senate -- and widely touted as offering a lifeline to distressed homeowners -- was initially suggested to Congress by lobbyists for major banks facing their own huge losses from the subprime mortgage crisis, according to congressional staff members and bank officials.” 

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