“Insurance companies will urge U.S. lawmakers today to stop the Federal Reserve from imposing bank-like capital standards on their industry.
“A provision of the 2010 Dodd-Frank Act that overhauled U.S. financial regulation requires the Fed to set minimum capital and leverage standards on non-bank firms, including insurance companies like Prudential Financial Inc.
“Insurance companies say bank capital standards don’t fit their business and will press their case for an amendment to the provision at a Senate Banking subcommittee hearing on the insurance industry requirements today.
“It’s a difference in the fundamental business model,” Julie Spiezio, senior vice president of insurance regulation and deputy general counsel for the American Council of Life Insurers, said. “It’s like trying to put the safety standards of airplanes on cars.”
Read full American Banker article here.