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GOP Senator Presses Fed Chief on Insurance Rules

U.S. Sen. Dean Heller (R-Nev.) is "deeply concerned" that the Federal Reserve could inappropriately impose tough new capital standards on the insurance industry...
March 23, 2015

U.S. Sen. Dean Heller (R-Nev.) is "deeply concerned" that the Federal Reserve (Fed) could inappropriately impose tough new capital standards on the insurance industry. In a letter to Fed Chair Janet Yellen, Heller urged caution as the Fed begins to establish new rules for large insurance companies. In particular, he indicated that he was wary of imposing new federal rules on an industry that had previously been monitored exclusively by the states.

"It is clear that state regulators have already been enforcing tight capital requirements. With the Federal Reserve now supervising a significant number of insurance holding companies, I worry that not enough is being done to ensure that properly tailored insurance standards will be applied," he said in the letter, in which he asked for details from Yellen about how she plans to treat insurance companies uniquely when it comes to the new rules. Congress unanimously passed legislation at the end of 2014 making clear that insurance companies should be subjected to different standards than banks.

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