(Bloomberg News) U.S. Representative Barney Frank's decision to retire at the end of his term will leave House Democrats without one of their most skillful debaters and their chief negotiator on banking and finance.
Frank has been at the forefront as Congress tried to prop up and reform the financial system during the most distressed economy since the Great Depression.
During 30 years in Congress, the 71-year-old Massachusetts Democrat has inflamed Republican critics with his advocacy for gay rights, cuts in defense spending and a strong government role in housing for low-income people. He led the Financial Services Committee during the 2008 credit crisis and was instrumental in passing the $700 billion bank bailout. He co- authored what would become the 2010 Dodd-Frank Act -- a 2,300 page overhaul of Washington's rules for Wall Street.
Frank had "the capacity to work with people on the other side," said Bill Delahunt, a former Democratic congressman from Massachusetts. "While he could be a stern voice, at the same time his real talent was to be able to get things done."
Republicans, who almost unanimously opposed Dodd-Frank, may find it easier to weaken regulations the banking industry sees as too intrusive, said Jaret Seiberg, a senior policy analyst with the Washington Research Group at Guggenheim Partners.
"Frank was probably the most articulate defender of the law in the House," Seiberg wrote in a note yesterday to clients. "His removal from the debate should make it incrementally more likely" that changes to the law could be made.
One of the first openly gay members of Congress, Frank has served in the House since 1981, representing a district that includes Boston suburbs Newton and Brookline and stretches out to cities including Taunton and Fall River. He said he plans to write, teach and lecture, and would not be retiring from commenting on public policy.
Representative Maxine Waters, a California Democrat, is next in line by seniority to take Frank's position on the committee. Among others down the list are Carolyn Maloney of New York, Mel Watt of North Carolina and Gregory Meeks of New York. All three lawmakers were among the final negotiators for what would become the Dodd-Frank Act.
Seiberg said in his note to clients that Waters "at times is very hostile to the banks so this is a situation worth watching."
Whoever steps into his shoes will be replacing a "legislative giant," said Representative Edward Markey, a Massachusetts Democrat who served with Frank in the state house.