Back in October, Rep. Barney Frank and other Financial Services Committee Democrats were “outraged” that William Frey, chief executive officer of Greenwich Financial Services LLC, had the audacity to oppose their plans to have banks voluntarily reduce the number of foreclosures. Apparently Frey had the nerve to contend that a contract is a contract.
Frank and the Democrats sent a rather threatening-sounding letter to Frey, declaring:
We were outraged to read in today’s New York Times that you are actively opposing our efforts to achieve a diminution in foreclosures by voluntary efforts . . . We have set a hearing for November 12, and we invite you now to testify. We believe it is essential for our policymaking function for you to appear at such a hearing, and if this cannot be arranged on a voluntary basis, then we will pursue further steps.
For the hedge fund industry, which has flourished for the past decade, to take steps so actively in opposition to what is currently in the national economic interest is deeply troubling and will clearly have serious implications for the rules by which we operate in the future if this posture of obstruction of our efforts is maintained.
Nice business you got there. Be a shame if something happened to it . . .