Many observers believe that enacting specific federal legislation governing covered bonds will be essential to foster the development of covered bonds as a funding source in the U.S. The following story — hot off the presses — documents a potentially momentous step in that direction:

WASHINGTON, D.C. — U.S. House Financial Services Committee Chairman Barney Frank (D-MA) gave assurances that covered bonds would be the subject of a Housing Subcommittee hearing next month, prompting Rep. Scott Garrett (R-NJ) to withdraw a covered bonds amendment he had just offered to the Financial Stability Improvement Act of 2009.

The assurances were given during the markup of the Act on Wednesday (Nov. 18.)

Calling Garrett “a very staunch advocate of a very good idea,” Frank requested the congressman to withdraw the amendment for now “with the commitment for a hearing in December and the likelihood of being able to put this in the bill in the final version” of the Financial Stability Improvement Act. READ MORE>>

http://www.coveredbondinvestor.com/news/barney-frank-promises-hearing-covered-bonds