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Our Nation's Financial Crisis - What It Means to Agents

PIA National Senior Vice President Patricia A. Borowski has written an analysis of the potential impact on the insurance industry of the current financial crisis...
November 10, 2008

PIA National Senior Vice President Patricia A. Borowski has written an analysis of the potential impact on the insurance industry of the current financial crisis and the federal efforts to relieve it. Borowski reviews the original rescue bill passed by Congress and the subsequent changes in its implementation by the current Treasury Department. She says the Treasury Department is taking actions that go beyond the intent of Congress.

"PIA believes Congress never intended for the rescue bill to be used to reduce competition in the marketplace," Borowski writes. "Federal officials should not be permitted to use this law as leverage to bring about wholesale changes in the manner in which the entire financial services sector operates. To do so would be to allow the current or future Treasury Secretary to unilaterally impose his pre-conceived view of how the entire financial system should operate, along the lines of Mr. Paulson's Blueprint for a Modernized Financial Regulatory Structure. Everyone needs to remember that only small pieces of this Blueprint have been previously presented to Congress and the states, and they were soundly rejected."

Read the entire article here. (PDF)