Banking Law

Among the many MENSA members who populate the US Congress and who are helping to straighten out the mortgage mess is Rep. Marcy Kaptur of Ohio, a Democrat, a 13-year veteran of the House, and member of the House Budget Committee. Tuesday's American Banker (paid subscription required) had a priceless tidbit that illustrates that the Bozo Factor is alive and well in halls of Congress.

Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke are certainly two of the biggest players in financial services, but Rep. Marcy Kaptur, D-Ohio, had to be reminded Thursday which was which.

During Mr. Bernanke's appearance before the House Budget Committee, Rep. Kaptur asked whether bank executives who profited from the housing boom should be forced to hand over their paychecks to taxpayers.

"Seeing as how you were the former CEO of Goldman Sachs, what percentage ?" she said before being cut off by fellow lawmakers, who explained that she had mistaken the Fed chief for Mr. Paulson.

"I've got the wrong person?" Rep. Kaptur asked as the committee room burst into laughter. "Who were you the CEO of?"

Mr. Bernanke quipped, "I was the CEO of the Princeton economics department."

His first congressional appearance of the year also attracted two protestors: one dressed as a polar bear, and another holding a sign reading, "Stop your greed for oil."

It was nice to see that Al Gore and Cindy Sheehan could make the hearing.

Here's a clip of the confused Rep. Kaptur and the amused Chairman Bernanke.