FOC Gets Boost From Bernanke Statement

 

Tuesday, Mar 10,2009, 5:19:18 PM   Click:

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2 March 2009

OPINION; Pg 8

242 words


OFC receives a boost from Bernanke's statement



FEDERAL RESERVE CHAIRMEN often speak in terms of oracle, like former Fed chairman, Alan Greenspan, has repeatedly demonstrated. Fortunately, his successor Ben Bernanke has sounded a little clearer last week when asked his opinion on the optional federal charters for insurers.

As we report on page 3, Mr Bernanke stopped short while endorsing the idea, but he said he thinks that the BCI is a useful idea ``,''`` particularly when large systematically critique''des insurance companies are involved. He added that `` holding level control systematically important institutions is very important'', noting that this control is not `` in some cases where we had problems. So I think an optional federal charter would be a direction deserves serious consideration.''

We could not agree more. We've long supported the concept OFC for insurers and producers. As Congress addresses issues of systemic risk, regulation in general and the regulation of the insurance industry in particular, the OFC requires careful consideration.

As the OFC and other supporters have noted earlier, we have no illusions that make such a fundamental change in the rules will be accomplished easily or quickly. But Mr. Bernanke's simple statement that the OFC is a useful `` idea''when considering the responses to the economic crisis can only help achieve the objective of the regulation of optional federal insurance much easier to achieve.

5 March 2009

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