WASHINGTON–Concerned that bond insurers' weakness will raise borrowing costs for state and local government, members of a House committee said today they will hold a hearing next month to examine whether stronger regulation for the sector is needed.

At a briefing for reporters today on the House Financial Services Committee agenda for this year, panel Chairman Rep. Barney Frank, D-Mass., said a hearing will be held by the Capital Markets Subcommittee Feb. 14.

Rep. Frank Kanjorski, D-Pa., the subcommittee's chairman, disclosed later that he had written letters to federal and state regulators seeking more information and is demanding a reply by Feb. 1.

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