The usual star at the World Economic Forum in Davos, Switzerland is the head of a central bank, finance minister, or the head of a major government. Rarely does a mere legislator capture center stage But this year US Congressman Barney Frank is the focus of attention.

I have in several blogs applauded Frank’s successful management of a new financial regulation bill through the House of Representatives. In my most recent comment I called his bill, the “legislative imperative,” and hope the Senate follows the House’s lead quickly.

The genesis of the “Great Recession” was an unregulated market for “securitized debt” and other derivatives. Thus the way to avoid another meltdown is fairly evident, regulate the market. Now there are many who call for an end to this trade all together, but this won’t happen. Proof of this is that the market is already on its way to its previous position as the main source of credit in the US economy.

Of course those in the market resist the regulation since they like the opaque nature of the old market that allowed them to buy and sell in closed transactions. Frank has made it abundently clear that the objective of his regulatory bill is to make, “all of these transactions transparent.” And we need these new regulatons as fast as possible since the market is aleady well underway.

Now why has Frank become the star of the Davos confab? Easy, financial regulators in all the other major economies are busily constucting similar new regulations for these formerly unregulated markets. They see Frank setting the rules in the most important economy as a guide and all want to talk to him so as to insure that their rules harmonize with his. They remember that the major lessson learned, in overcoming the “Great Recession” was that all the major economies had to coordinate their actions so as to not frustrate each other’s actions.

I am happy to see that the “movers and shakers” of the world’s economy have fully recognized Frank’s major contribution to restoring a healthy economy. Now, let the Senate complete the law.