.. and that is the increasing disconnect between growth in the gross domestic product and the well-being of the average citizen," Frank said.
He laid out a lengthy to-do list including passing a bill cracking down on predatory lending, boosting data privacy and building more affordable housing. "We will try to get back into the business of building affordable housing," Frank said. He called it the single biggest difference between the committee's workload under his leadership and its agenda under Republicans.
But Frank acknowledged there may be clashes with Republicans over the housing issue. Democrats gained a small but potentially effective majority in the November elections. Frank reiterated plans to push a bill that would give shareholders a vote about executive compensation and said he wants to hold hearings about hedge funds.
"I don't think there's enough information about them," he said. Frank acknowledged concern by some lawmakers that investments by pension funds in the lightly regulated investment vehicles may put some consumers at risk. Frank said congressional negotiators have agreed on using some profits of big mortgage-finance companies Fannie Mae and Freddie Mac to fund affordable-housing programs.
That progress on new rules for Fannie and Freddie, both of which have weathered major accounting scandals, "is not going to go away," Frank said. Lawmakers won't pass a bill tightening rules on the companies before the current Congress adjourns, he predicted. was releasing restated earnings for 2002, 2003 and part of 2004.
The restatement, ordered by securities regulators who accused Fannie of manipulating earnings to hit executive bonuses, cost the company $6.3 billion through the middle of 2004. Frank also told reporters he wants to extend and expand a soon-to-expire federal law that backstops the insurance industry in case of terrorist attacks.
The Bush administration has argued the program needs to die out, having served its purpose of propping up insurers directly after the Sept. 11, 2001 terrorist attacks. 
Robert Schroeder is a reporter for MarketWatch in Washington.
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