Congress will enact changes in financial regulation that will be "fair" and "pro-market," Rep. Barney Frank, (D-Mass.) told CNBC Monday.
"We're going to make this fair for everyone," Frank said in a live interview. "The decision making will be in the hands of people who know what they're doing. We're going to be very pro-market."
"We been busy with other issues [healthcare]," said Frank. "But we are on schedule for us to be voting on financial regulation in pieces."
Frank, who is chairman of the House Financial Services Committee said he trusts the people who will be making the decisions about regulation. "I think the administration has put together a good team to deal with something complicated like derivatives," Frank said. "I trust [Tim]Geithner, and Sheila Bair to make the right calls."
Frank went on to criticize the market's reliance on rating agencies. "We have exalted rating agencies too much," Frank said. "We need to repeal laws that mandate the use of rating agencies."
And on the anniversary of the collapse of Lehman Brother, Frank said, "We have to have a method were you can dissolve a bank without all the turmoil."
(Watch video for full interview)
And President Barack Obama sternly warned Wall Street against returning to reckless and unchecked behavior that had threatened the nation with a second Great Depression.
Even as he noted the U.S. economy and financial system were pulling out of a downward spiral, Obama warned financial titans on Monday -- the first anniversary of the Lehman Brothers collapse -- they could not count on any more bailouts.
He credited his administration and the $787 billion stimulus package rammed through Congress in the first days of his taking office for pulling the country back from the brink.
"We can be confident that the storms of the past two years are beginning to break," he said.
And even as the economy begins a "return to normalcy," Obama said, "normalcy cannot lead to complacency."
Nevertheless, Obama said, "Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them."
His tough message warned the financial community to "hear my words: We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses."
Obama spoke at Federal Hall in the heart of Wall Street before an audience that included members of the financial community, lawmakers, and top administration officials. He planned lunch with former President Bill Clinton after the speech, before returning to Washington. Administration officials would not disclose any details of the luncheon discussion.
In marking his determination to prevent a repeat of the crisis that nearly brought down the global financial system last fall, Obama said he was attacking the problem on several broad fronts, including new rules to protect consumers and a new Consumer Financial Protection Agency to enforce those rules and closure of regulator loopholes and overlap that "were at the heart of the crisis" because it left key officials without "the authority to take action."