The Senate Banking Committee today considered the nomination of Roy Woodall to serve a six-year term as a voting member with insurance expertise on the Financial Stability Oversight Council (FSOC).
Woodall, a former Treasury Official and Kentucky Insurance Commissioner, testified today that he would strive to maintain his independence and be beholden neither to the administration or the insurance industry. “This is a new creation and I am an independent voice,” he said. “I have to vote my conscience.”
In an exchange with Ranking Member Richard Shelby (R.-Ala.), Woodall asserted that insurance operation do not normally represent a systemic risk to the financial. When Shelby raised the role of American International Group in precipitating the financial crisis, Woodall said his goal was to treat systemic risk on a company-by-company basis and he did not view the actions of AIG as representative of the insurance industry as a whole. “It’s only when insurance companies go beyond the traditional business model they get in trouble,” Woodall said.
Overall, the respect afforded Woodall by Shelby and Senate Banking Committee Chairman Tim Johnson (D. – S.D.) may bode for his nomination.
In a statement, Leigh Ann Pusey, president and CEO of the American Insurance Association, urged the Senate to expedite the confirmation process. “AIA is pleased that the Senate Banking Committee is holding today’s hearing and urges the Senate to quickly confirm Mr. Woodall before the August recess,” Pusey said. “A timely confirmation will ensure that insurers’ interests are fully represented on the FSOC.”
