WASHINGTON BUREAU — Sen. Robert Corker, R-Tenn., says he would be “stunned” if the Senate failed to reach a bipartisan agreement on financial services regulation.
Meanwhile, Sen. Earl Benjamin Nelson, D-Neb., says he is withholding support of the legislation in its current form because he fears that certain provisions may impose unecessary regulations on insurers.
“I don’t want to see any kind of solutions that get involved in insurance company operations,” Nelson said Wednesday.
The Senate financial services bill draft, now known as the Dodd bill, would create an Office of National Insurance, subject potentially “systemically risky” insurers to federal oversight and contain provisions – similar to provisions in the House financial services bill — that would put the state of domicile of a reinsurer or surplus lines company in charge of regulating the reinsurer or surplus lines company.
The bill would address the systemic risk issue by making large financial services companies, including large insurers, subject to oversight by the Federal Reserve Board and a new Financial Stability Oversight Council.
Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, drafted the Senate’s financial services bill together with Corker and other committee members.
The committee approved the bill in March.
Corker talked about the bill’s prospects this morning on “Good Morning America.”
In March, the only Banking Committee members who voted for the bill were Democrats, and that raised questions about whether the bill could attract enough Republican support to come up for a vote in the Senate.
“Unfortunately, the winds are blowing — there’s lots of things happening here that don’t aid that effort,” Corker said on “Good Morning America.” “But, at the end of the day, I think we’re going to have a solid bipartisan effort.”