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President Signs Fin. Svcs. Reform; Insurers Turn Focus To Regs

WASHINGTONâ??President Obama has signed financial services reform legislation, setting in motion an intense effort by interested parties to shape the regulations that will implement the bill to their liking.
In signing the billâ??H.R. 4137, the Dodd-Frank Wall Street Reform and Consumer Protection Actâ??President Obama said, â??For years, our financial sector was governed by antiquated and poorly enforced rules that allowed some to game the system and take risks that endangered the entire economy.â?
â??This reform will help foster innovation, not hamper it,â? he said.
He added, â??It is designed to make sure that everyone follows the same set of rules, so that firms compete on price and quality, not tricks and traps.â?
The president signed the bill at the Ronald Reagan Building in downtown Washington.

For insurers, the bill generally retains state regulation of insurance  news while giving federal financial regulators authority to prevent future market meltdowns by forcing prompt correction action and, in a pinch, take over institutions, including insurers, that they deem constitute a potential systemic risk.In other words, despite the fact that strong government intervention was needed by federal regulators to stabilize American International Group, the final bill â??allows federal regulatorsâ?? whiskers, not their nose, under the tent of state regulation,â? as stated by one industry lobbyist.

It creates a Financial Stability Oversight Council to monitor large institutions and take them under control, if necessary.
But the provision also gives state insurance regulators the authority to â??wall offâ? operating insurance companies from troubled holding companies.
State regulators will retain their role to monitor consumer protections in the insurance sector.

This entry was posted on Monday, July 26th, 2010 at 9:30 am and is filed under Florida Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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