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The free market at work

The Washington Post reports:

J.P. Morgan Chase, Bank of America and Citigroup announced temporary moratoriums on foreclosures today at the urging of a key House member.

Top executives from these firms endured tough questioning before the
House Financial Services Committee earlier this week, including about
whether the banks have done enough to help struggling homeowners. In
public statements and letters to the committee released today,
Citigroup and J.P. Morgan sought to show the extent of their efforts.

J.P. Morgan Chase said it would not begin the foreclosure process on
any owner-occupied properties until March 6. "We believe three weeks is
adequate time for the Treasury to announce — and for us to implement
— a new plan," Jamie Dimon, Chase's chief executive, said in a letter
to Rep. Barney Frank (D-Mass.), chairman of the committee.

Barney Frank is the one member of Congress most associated with making sure that everyone, including poor people, can own a home. I wonder if he realizes that this kind of policy will make it harder for poor people to get loans in the future. (HT: Zev Fredman)