WASHINGTON--Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said today that Congress will likely move next year to require companies which insure credit default swaps, such as American International Group, to at least partially reserve against potential losses.

In comments at the Consumer Federation of America's annual conference, Rep. Frank labeled AIG's decision to guarantee against losses on mortgage-backed securities backed by sub-prime loans at the holding company level "as unregulated speculation."

At the same time, Rep. Frank sought to douse speculation that Democrats, in control of the White House, and both houses of Congress for the first time since 1993, will impose Draconian regulation on financial services companies.

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