Drafters of the new systemic risk bill proposal have applied roughly the same to rules to insurers that they apply to other financial services companies.
Obama administration officials and members of Congress have been talking for months about creating a new body that would keep tabs at financial services giants and giving the Federal Deposit Insurance Corp. or another agency the authority to resolve problems at troubled financial services companies outside the banking sector.
Staffers in the U.S. Treasury Department and at the House Financial Services Committee now have come up with a proposal that mostly lumps insurers together with other types of financial institutions.
In a bill proposal, the staffers have proposed a definition of “primary financial regulatory agency” that includes “the state insurance authority of the state in which an insurance company as domiciled.”
The Financial Services Oversight Council created by the draft would include a state insurance commissioner chosen by state insurance commissioners.