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Fed Looks To Tailor Bank-Focused Capital Rules To Insurers

Publisher: Law360
May 20, 2016

Bill Goddard was quoted in an article "Fed Looks To Tailor Bank-Focused Capital Rules To Insurers," in Law360. In the article, Goddard discusses the fears of some market participants that the Federal Reserve could impose bank-like regulations on the insurance industry. This would pose a challenge to insurers to change their accounting measures in order to report capital in the way that other companies do. Requiring insurance companies to measure their capital in the way that Governor Tarullo described in a speech on May 20th appears to recognize the differences in financial reporting at insurance companies, as well as the differences in their funding structures, Goddard believes. The Fed is researching using "the building block approach" for non-systemic companies that would allow groups to add up the regulatory capital they maintain at each of their operating units in order to give a picture of their total capital levels.


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