FDIC Chief Bair Says Agency May Expand to Regulate Insurers
published: Oct 29, 2008
Federal Deposit Insurance Corp. Chairman Sheila Bair said the agency may expand to offer protection and regulation for more types of financial institutions, including insurers.
Congress is interested in a federal mechanism to regulate insurers with a U.S. guarantee similar to deposit insurance, she said today at a conference of international deposit insurers in Arlington, Virginia. ''That might be a direction where our abilities would be expanded,'' Bair said.
Bair, whose Washington-based agency insures deposits at U.S. banks, has won praise from lawmakers including House Financial Services Committee Chairman Barney Frank for helping to accelerate modification of troubled mortgages.
Some of the largest U.S. insurers have pushed for federal oversight to replace regulation provided by the 50 states. The so-called ''optional federal charter'' would give insurers a choice between a national or state overseer to monitor their ability to pay claims.
