Paulson Calls For Federal Insurance Oversight

While testifying on the federal institution rescue plan, Treasury Secretary Henry Paulson today repeated calls for creation of a federal insurance regulatory system.

Paulson said at a financial crisis hearing organized by the Senate Banking, Housing and Urban Affairs Committee that he supports shifting to an optional federal charter system, which would give insurers a chance to choose between being regulated by a new, federal insurance regulatory agency, or by the current state insurance regulatory agencies.

Paulson referred to the Treasury Blueprint on Financial Modernization, a report released in March that calls for creating an OFC system.

Passing an OFC bill will take time, Paulson said.