The Treasury Department’s financial services reform “blueprint” report is getting a mixed reaction from key members of Congress.
Treasury Secretary Henry Paulson unveiled the blueprint report here today before a packed audience in an ornate meeting room in the old Treasury Building.
In the report, department officials have declared their support for the general concept of creating an optional federal regulatory system for insurance.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has criticized the recommendations the Treasury Department makes report.
“The plan goes too far in diminishing the role of the states,” Frank contends.
But Rep. Paul Kanjorski, D-Pa.., chairman of the committee’s Capital Markets Subcommittee, says he will support optional federal charter legislation.
“I have worked toward this goal for some time,” Kanjorski says in a statement.
The Capital Markets Subcommittee will hold a hearing later this month on insurance regulatory issues, and “the Treasury Department should have a seat at the table at this hearing,” Kanjorski says.
Kanjorski says he also would support a Treasury Department recommendation to create an Office of Insurance Oversight within the Treasury Department, to collect insurance industry information and advise the administration while Congress is working on setting up an OFC system.
Kanjorski notes that he himself already has called for the establishment of a federal insurance advisory entity.
“In today’s markets, the federal government needs in-house expertise on insurance policy,” Kanjorski says.