Legal News

Insurance Companies Seek to Escape Bank Capital Standards
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Insurance companies, according to Bloomberg News, are urging U.S. lawmakers to stop the Federal Reserve from imposing bank-like capital standards on their industry. The insurance companies report that these bank capital standards don’t fit their business. There was no federal consolidated capital requirement for subsidiaries and affiliates of insurance companies prior to the Dodd-Frank. The Dodd-Frank Reform Bill and Consumer Protection Act was passed as a response to the Great Recession and it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression.

“It’s like trying to put the safety standards of airplanes on cars,” reported the senior vice president of insurance regulation and deputy general counsel for the American Council of Life Insurers, Julie Spiezio, also stating that, according to Bloomberg News, “It’s a difference in the fundamental business model.”

  
What
Where


A Maine Republican, Senator Susan Collins, stated in letters last year that she did not intend for the Fed to subject insurance companies to bank standards. Both Federal Reserve Chair Janet Yellen and her predecessor, Ben S. Bernanke, have agreed that insurance companies should meet different capital standards than banks.

Janet Yellen said at a February hearing that, “We recognize that there are very significant differences between the business models of insurance companies and the banks that we supervise, and we are taking the time that’s necessary to understand those differences and to attempt to craft a set of capital and liquidity requirements that will be appropriate to the business model of insurance companies.”

President Barack Obama’s administration has previously opposed any legislation to amend Dodd-Frank. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




According to Jaret Seiberg, policy analyst at Guggenheim Securities LLC’s Washington Research Group, an amendment to the capital provision would probably be welcomed.

Image credit: www.finance.fortune.cnn.com





 

RELEVANT JOBS

Corporate and Federal Taxation Attorney

USA-NC-Winston Salem

Spilman Thomas & Battle, PLLC is currently seeking an experienced corporate and federal taxation att...

Apply now

Associate Principal Data Analyst, Data Privacy

USA-MD-Rockville

The Data Privacy & Protection Office (the Privacy Office) is responsible for ensuring that FINRA mee...

Apply now

Principal Counsel, Ethics

USA-DC-Washington

The Ethics / Code of Conduct Office (the Ethics Office) is responsible for ensuring that FINRA execu...

Apply now

Associate General Counsel, Labor & Employment

USA-DC-Washington

The Associate General Counsel, Labor and Employment provides legal counseling to the company on empl...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Family Law and Estate Planning Attorney

USA-NH-Nashua

Nashua office of our client seeks family law and estate planning attorney with 3-10 years of experie...

Apply Now

Civil Defense Attorney

USA-WI-Waukesha

Waukesha office of our client seeks civil defense attorney preferably with 7 years of litigation exp...

Apply Now

Senior Litigation Associate Attorney

USA-GA-Atlanta

Atlanta office of our client seeks senior litigation associate attorney with 8+ years of experience ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top