House Financial Services Committee Chairman Forecasts Longer Recession if Housing Issues Aren’t Resolved

Washington, D.C.–Barney Frank, the Democratic chairman of the House financial services committee, told reporters Thursday that the U.S. recession would be “longer and deeper” than anticipated if lawmakers and the Bush administration didn’t come to terms on new housing legislation.Along with Chairman of the Senate Banking Committee Chris Dodd, Frank is encouraging a proposal that would allow the government to intervene in the U.S. mortgage market by using up to $400 billion in taxpayer-backed guarantees.Negotiations are expected to become more tense in the coming weeks as the legislation debate continues, the Financial Times reports.