Speaking before a meeting of the Financial Stability Oversight Council yesterday, Treasury Secretary Timothy Geithner announced the appointment of
McRaith will become the first leader of the FIO, and will be tasked with advising Geithner on insurance issues, lead the preparation of reports and analysis and have limited pre-emption powers over state laws that affect international insurance arrangements. He also will serve as a non-voting member on a new federal panel created to determine which financial firms present a risk to the financial system and be the U.S.'s public face in negotiating international insurance agreements, The Wall Street Journal reports.
The FIO's new director will be required to submit a report to Congress on how best to modernize and improve insurance regulation by early 2012. Both proponents and opponents of a larger federal role in insurance regulation have suspected the report will conclude that the U.S. should have a greater presence, the Journal says.
The creation of the FIO came out of the Dodd-Frank Act, which, up until now, has largely exempted insurers from any new regulations.
McRaith is currently secretary-treasurer of the
Prior to his appointment as Illinois Department of Insurance director, he worked for 15 years in private practice as an attorney in Chicago representing national and regional financial institutions, including insurers, in finance-related litigation. He received a Bachelor of Arts Degree from Indiana University, and a law degree from Loyola University School of Law in Chicago.
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