Barney Frank Fallout

Before folks start rejoicing too much at the news that Barney Frank will not be seeking re-election, we need the sobering thought that Maxine Waters is next in line to be the ranking Dem on the Financial Services Committee.  Yes, you read that right: Maxine Waters is poised to take over from Barney Frank.  And she knows it, too.  In fact, today she made the point in a statement regarding Barney's decision to allow America to prosper not seek another term. 

Interestingly, it puts the Dems in a tough spot - pass Waters over and risk the ire of the CBC, or support her and have to deal with her three pending ethical violations charges which all tie into her position on the Financial Services Committee.  Pity them.

Is this a big deal?  Well, that depends on what you view as "a big deal."  If you are at all concerned that the Dems will re-take the House in 2012, and you recognize that banks play an enormously important role in our economy, then this might be a "big deal," or as VP Biden likes to say, "a big f#*&ing deal!"  If you don't think the Dems will re-take the House, this is still a "Big f#&*ing deal" because Maxine Waters hates banks and doesn't understand finance.

Business Insider has this on the prospects:

Unfortunately for the banking sector, the next Democrat in line to succeed Frank as the committee's ranking member is none other than Rep. Maxine Waters, the controversial California congresswoman best known for her questionable ethics and apparent lack of understanding about how the U.S. financial system works.

If the 2009 TARP hearings are any indication, Waters's ascension will likely have Wall Street longing for the days of Dodd and Frank. During those hearings, Waters totally befuddled bank CEOs — and Treasury Secretary Tim Geithner — with crazy, rambling questions and conspiracy theories about Goldman Sachs.

She also introduced a bill calling for a ban on credit-default swaps and, more recently, called on President Obama to rein in "gangsta" banks and "tax them out of business."

Hold on to your hats!

In all seriousness, the Republicans should be using this fact to remind voters exactly why it is important to not the Dems regain the House.  Let the Dems deal with the problem of their own making.