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CNBC TRANSCRIPT: CNBC'S SQUAWK BOX SPEAKS WITH REP. BARNEY FRANK, HOUSE FINANCIAL SERVICES COMMITTEE CHAIRMAN, TODAY

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Barney Frank

WHEN: Today, Monday, April 19th

WHERE: CNBC's "Squawk Box"

Following are excerpts from the unofficial transcript of a CNBC interview with Congressman Barney Frank today on CNBC's "Squawk Box."

All references must be sourced to CNBC.

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FRANK ON THE RICH:

"WHEN YOU ARE DEALING WITH THE RICH AND THE SOPHISTICATED THEY DON'T NEED ANY PROTECTION, WELL THEY DO NEED PROTECTION AND LET'S MAKE IT CLEAR EVEN IF YOU DON'T HAVE A GREAT DEAL OF SYMPATHY FOR THEM BECAUSE NOBODY PUT A GUN TO THEIR HEAD AND SAID, WHY DON'T YOU MAKE A STUPID PURCHASE? THEY ARE NOT JUST PLAYING WITH THEIR OWN MONEY, THEY ARE PLAYING WITH OTHER PEOPLE'S MONEY AND THE SOCIETAL IMPACT OF THEIR ERROR CAN BE VERY GREAT, SO I THINK IT REINFORCES THE VIEW THAT NO, YOU CAN'T JUST LEAVE THE RICH TO THEIR VICES."

FRANK ON OBSTACLES:

"THERE IS THIS ISSUE THAT THE REPUBLICANS HAVE RAISED ABOUT THE FUNDS BEING RAISED FROM THE FINANCIAL INSTITUTIONS BEFOREHAND WHICH AGAIN SHEILA BAIR HAS BASED ON HER EXPERIENCES AT THE FDIC HAS SAID YOU NEED, THAT IS NOT ESSENTIAL TO THE BILL, I THOUGHT IT MADE SENSE, THAT IS WHY I SUPPORTED IT TO HAVE THAT MONEY ON HAND NOT FROM THE TAXPAYERS BUT IF THAT WERE THE ONLY OBSTACLE I DON'T THINK IT WOULD SURVIVE."

FRANK ON GOOD CONSEQUENCE:

"WHEN PEOPLE TELL ME THAT THE EFFECT OF RISK RETENTION ON SECURITIZATION OR PUTTING MORE DERIVATIVES ON EXCHANGES ETC. ETC. WHEN THEY TELL US THAT THE EFFECT OF THAT WILL BE TO DIMINISH THE ACTIVITY MY ANSWER IS GOOD THAT IS AN UNINTENDED GOOD CONSEQUENCE."

FRANK ON BEING FRUSTRATED:

"I AM FRUSTRATED BY A WILLINGNESS ON THE PART OF SOME OF MY REPUBLICAN COLLEAGUES TO JUST TELL LIES ABOUT IT. THE FACT IS THAT NO MONEY CAN BE EXPENDED UNDER THE BILL THAT PASSED THE HOUSE, AND UNDER SENATOR DODD'S BILL, NO MONEY CAN BE EXPENDED TO PAY ANY PART OF THESE DEBTS UNTIL THE INSTITUTION IS PUT OUT OF BUSINESS."

FRANK ON THE ROLE OF THE FINANCIAL SECTOR:

"THE ROLE OF THE FINANCIAL SECTOR IS THE INTERMEDIARY, THAT IS WHY THE PHRASE DISINTERMEDIATION HAS BEEN USED, THEIR JOB IS TO GATHER UP MONEY FROM PEOPLE WHO HAVE GOT SOME MONEY SITTING AROUND AND MAKE IT AVAILABLE TO PEOPLE WHO WILL PUT IT TO USE PRODUCING GOODS AND SERVICES, WHAT HAS HAPPENED IS TO A GREAT EXTENT, IN SOME INSTITUTIONS THAT MEANS BECAME THE END IN ITSELF."

FRANK ON THE BUY SIDE:

"THE THEORY THAT THE BUY SIDE NEEDS NO PROTECTION, THAT BECAUSE YOU HAVE SOPHISTICATED WEALTHY BUY SIDE PEOPLE YOU DON'T NEED ANY KIND OF REGULATION IN THE TRANSACTIONS, I THINK IS THE MAJOR PIECE THAT FALLS, I DON'T SEE HOW ANYBODY CAN ARGUE THAT AFTER THIS."

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