Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > Federal Regulation

Paulson Calls For Federal Insurance Oversight

Your article was successfully shared with the contacts you provided.

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.

Paulson appeared mainly to lobby for prompt action on his request for the authority to spend up to $700 billion over the next 2 years to buy troubled securities from U.S. and foreign financial institutions.

Paulson asked committee members “to enact this bill quickly and cleanly, and avoid slowing it down with other provisions that are unrelated or don’t have broad support.”

Ben Bernanke, chairman of the Federal Reserve Board, also appeared to testify in support of the bailout bill.

The financial system “continues to be very unpredictable, and very worrisome,” and inaction could lead to a recession, Bernanke said.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.