This week the House of Representatives passed a bill to provide the Federal Reserve more flexibility when regulating large insurance companies.
H.R. 5461, the Insurance Capital Standards Clarification Act of 2014, introduced by Rep. Andy Barr (R-KY), would amend the Dodd-Frank Act to give the Federal Reserve flexibility to set capital standards for insurance companies.
By empowering FSOC [the Financial Stability Oversight Council] to designate Systemically Important Financial Institutions (SIFIs), the Dodd-Frank Act allows the Federal Reserve to impose one-size-fits-all standards on banks and non-banks; in other words, to move more institutions from the non-bailout economy to the bailout economy. The bipartisan Insurance Capital Standards Clarification Act of 2014, including its other provisions that have already received overwhelming support from Democrats and Republicans, is common sense legislation that holds Washington accountable, strengthens our economy and helps create jobs,’ said Financial Services Committee Chairman Jeb Hensarling (R-TX).
Financial Services Committee Press Release.