Socking away cash to protect against a future financial institution collapse would weaken initiatives to strengthen the economy and create jobs today, insurance groups are telling the leaders of the Senate Banking, Housing and Urban Affairs Committee.
The groups are asking the committee leaders to kill efforts to make large financial institutions pre-fund a “systemic risk resolution fund,” or bailout fund.
A provision in H.R. 4173, the Wall Street Reform and Consumer Protection Act bill, would finance the fund by imposing assessments on financial institutions with more than $50 billion in assets.
The House is set to take up H.R. 4173 on the floor Wednesday.
The Senate Banking Committee is drafting a bipartisan financial services bill similar to the House bill. The committee hopes to have a bill ready for committee consideration before Congress departs for the Christmas recess.