While endorsements of an optional federal charter for insurers were easy to come by during the previous administration, the Obama administration has largely avoided offering an opinion on the controversial issue.
Yet, in
While the bulk of Volcker's testimony concerned systemic risk and resolution authority, he ended his remarks with several suggestions to improve financial regulation, one of which was establishment of an OFC. "I also urge consideration of making a national insurance charter available to insurance companies willing to accept Federal prudential standards," he said. "Large issues with accounting and credit rating agencies remain. Those are matters for another day."
According to a report by
It is unknown how much the opinion of Volcker, who served two terms as Chairman of the Federal Reserve, reconciles with the official stance of the administration. Elsewhere is his testimony, Volcker argued that the administration's approach to financial regulation will not alleviate the "too big to fail" problem, seemingly contradicting the assessment Treasury Secretary Timothy Geithner gave the committee one day earlier.