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Madoff Scandal Would Not Have Happened Under State Regulation, Praeger Says

Sandy Praeger, the Immediate Past President of the National Association of Insurance Commissioners (NAIC), says the scandal surrounding Bernard Madoff, the former investment guru who...
January 22, 2009

Sandy Praeger, the Immediate Past President of the National Association of Insurance Commissioners (NAIC), says the scandal surrounding Bernard Madoff, the former investment guru who faces charges for bilking his investors in a Ponzi scheme, would not have happened under state regulation. "The Madoff thing would not have happened under the state regulatory system," Praeger said. She said that when the Securities and Exchange Commission conducts an internal examination of its processes relating to Madoff's activities, it will find that "perhaps they weren't adequate." Her comments came in an interview in the Lawerence, Kansas Journal-World. Preager is Kansas Insurance Commissioner.

"What I'm proudest of this year - just the fact that we've been able to work collectively to demonstrate that our house was in order when the rest of the financial services sector seemed to be having difficulty," Praeger said in an interview after her term as NAIC president ended in December.

Praeger expects the Obama administration to dive heavily into health care issues. A moderate Republican, during the presidential campaign she criticized GOP presidential nominee John McCain's health care plan to allow a product licensed in one state to be approved to be sold in all states. Instead, she said, the country needs a bipartisan approach to creating a new health care policy.

Praeger Leads During Uncertain Times (Lawerence KS Journal-World 1/1/09)