Implementing S. 3217, the Restoring Financial Stability Act bill, could lead to years of financial services system change.
Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking, Housing and Urban Affairs Committee, unveiled a draft of the “Dodd bill” in December 2009, but some sections of the RSFA bill have been in the works for a decade or more.
One section, for example, might create an Office of National Insurance in the U.S. Treasury Department. Other sections could change annuity marketing rules, affect life insurance companies’ hedging arrangements, and give a federal entity a role in resolving problems at large, troubled insurers.
Meanwhile, the House already has passed a comparable financial services bill, H.R. 4173, the Wall Street Reform and Consumer Protection Act.
Merging H.R. 4173 and S. 3217 could produce highly unpredictable results.