Do More With Reuters
Partner Services

State insurance overseers slam Paulson revamp plan

Mon Mar 31, 2008 11:16pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Kevin Drawbaugh

WASHINGTON, March 31 (Reuters) - In a sign of the rough road ahead for a Bush administration proposal to overhaul financial regulation, state insurance authorities on Monday criticized the plan's call for a federal insurance regulator.

Calling the proposal "a solution in search of a problem," a group that represents state insurance commissioners warned Treasury Secretary Henry Paulson against trying to bring more federal power to a regulatory system now run by the states.

"State regulators are glad that someone at the federal level is finally paying attention to the financial crisis facing our nation," said Sandy Praeger, who is president of the National Association of Insurance Commissioners and the insurance commissioner of Kansas. "However, any change should not put the needs and convenience of Wall Street ahead of the cares and concerns of Main Street."

Amid a widening housing market crisis and recession fears, Paulson on Monday unveiled a package of proposals to overhaul how Washington polices commercial and investment banks and the financial markets. Several of Paulson's ideas have been kicking around Washington for years.

One is his proposal to create an optional federal charter for insurers, a long-standing goal of some of the largest competitors among the nation's more than 6,000 insurers.

States now regulate insurers, forcing companies with national scope to comply with more than 50 different rulebooks. These companies favor an optional federal charter, which would save them money and centralize their lobbying efforts. Under the Paulson plan, companies could continue answering to state authorities if they chose.

Supporters of an optional federal charter include Allstate Corp (ALL.N: Quote, Profile, Research) and others.

Asked about Paulson's backing of an optional federal charter, Senate Banking Committee Chairman Christopher Dodd on Monday said: "That's a matter we're already talking about up here."  Continued...

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

GLOBAL RECOVERY

A labourer works on a flyover bridge at a construction site in New Delhi October 14, 2009. REUTERS/Parth Sanyal/Files
Global economy in holding pattern - IMF

The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months.  Full Article 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

showcase

U.S. Recession
U.S. Recession

A trip through the epicenters of the American recession.  Full Coverage 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
T P Raman
Column - RBI leads the world

Reserve Bank of India's approach ring-fenced the banking system.   Full Article 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Not Enough Jobs
Not Enough Jobs

Venture capital creates jobs, but not enough.  Full Article 

 
Column - A Sweet Dream
Column - A Sweet Dream

There are good reasons for Ferrero to consider a combination with Cadbury.  Full Article