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Friday, December 5, 2014

House and Senate Edge Closer to Reaching Agreement on TRIA

On Thursday, House and Senate negotiators reached an agreement to extend the Terrorism Risk Insurance Act (TRIA) for six years. The deal would maintain the federal insurance backstop passed by Congress after the September 11, 2001 attacks. The threshold for federal assistance would begin after destruction costs reached $200 million, doubling the current threshold of $100 million.

Republican negotiators added a measure to lessen the impact of the 2010 Dodd-Frank Act on unintended targets. The new measure would give insurance companies more flexibility on capital standards that were initially intended for banks under the financial regulatory law.

“We’re getting close to a fair compromise that would help New York and other cities,” said Senator Charles E. Schumer of New York, the Democrats’ chief negotiator. “I’m optimistic we can get this done.” Congressman Jeb Hensarling, Chairman of the House Financial Services Commitee would like to add another measure that would make farmers, ranchers, manufacturers and small businesses that use financial instruments to hedge risks exempt from capital requirements aimed at hedge funds and other financiers.

If you would like to learn more about ABIA's support of TRIA or join our TRIA Task Force, please contact us and visit our website.