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NCSL Holds Hearing on States and Systemic Risk

On Thursday, April 23, the National Conference of State Legislatures' Communications, Financial Services and Interstate Commerce Committee, chaired by Rep. Phil Montgomery (WI), hosted a...
May 5, 2009

On Thursday, April 23, the National Conference of State Legislatures' Communications, Financial Services and Interstate Commerce Committee, chaired by Rep. Phil Montgomery (WI), hosted a discussion entitled Systemic Risk Regulator: How Will States be Affected? 
 
The panelists addressed Congress' focus on preventing a future financial calamity and its potential solution of a federal risk regulator to monitor financial markets. Panelists agreed that it is not a question of if a systemic regulator will be created, but when. Their discussion centered on how creation of a systemic risk regulator will alter state regulation of insurance, banking and other financial services industries.

Panelists included: Commissioner Sarah Bloom Raskin, Conference of State Bank Supervisors, Maryland; Commissioner Sean Dilweg, National Association of Insurance Commissioners (NAIC), Wisconsin; Representative Greg D. Wren, Alabama, on behalf of the Coalition Organized for the Future of Insurance Regulation (COFIR).

Ms. Raskin pointed out the strength of state regulated banks, but said that regulation could always be improved.  Commissioner Dilweg pointed out the success of state insurance regulation and that Congress should not take away their resources.  Representative Wren stated that it was clear that federal regulation failed and it would be a shame to reward this failure with even more authority.

In response to a question from PIA National's Senior Vice President Pat Borowski, the panelists agreed that it is essential for them to work together to make sure the state regulatory system continues to modernize.