| 00:01:03 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
WHICH THE CAPITAL MARKET SUBCOMMITTEE HAS DEBATED IN GREAT DEPTH FOR SEVERAL YEARS. ON THE EVE OF THE ADMINISTRATION'S UNVEILING OF ITS PLAN TO STRENGTHEN...
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| 00:06:39 |
Garrett, Scott - U.S. Representative, [R] New Jersey
ADMINISTRATION ON ITS PLAN FOR FINANCIAL REGULATORY REFORM AND FROM WHAT I CAN TELL, IT SEEMS UNCLEAR TO WHAT EXTENT THE PROPOSAL WILL ADDRESS INSURANCE...
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| 00:10:44 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
REGULATED SUBSIDIARIES AND THOSE SUBSIDIARIES ARE PRETTY MUCH OKAY. IT SOLD PORTFOLIO INSURANCE THROUGH
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| 00:10:52 |
Sherman, Brad - U.S. Representative, [D] California
UNREGULATED SUBSIDIARIES CONVINCING THE WORLD THAT IT WASN'T INSURANCE AND THEY TOOK DOWN THE COMPANY, IF NOT THE WORLD ECONOMY. THE FIRE INSURANCE...
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| 00:11:59 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
SOLVENCY II DIRECTIVE WHICH PROVIDES AN IMPORTANT,
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| 00:12:02 |
Royce, Edward "Ed" - U.S. Representative, [R] California
YET RELEVANT EXAMPLE OF AN EFFORT UNDER WAY TO CREATE A MORE EFFICIENT REGULATORY STRUCTURE. YESTERDAY'S OP-ED IN THE "THE WASHINGTON POST" BY LARRY...
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| 00:15:51 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
OR FEDERAL LEVEL? BUT I THINK THAT THE MAJOR MOD THAEL WE
|
| 00:15:56 |
Scott, David - U.S. Representative, [D] Georgia
ARE USING, AIG, IS FLAWED AT ITS BEST BECAUSE AS WE LOOK BACK AT IT, WHAT CAUSED THE PROBLEM WITH AIG WAS THEIR FINANCIAL PRODUCTS DIVISION BASED...
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| 00:17:51 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
IT RELATES TO SYSTEMIC RISK. FORTUNATELY THE INSURANCE INDUSTRY IS IN GOOD SHAPE DUE
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| 00:17:59 |
Biggert, Judy - U.S. Representative, [R] Illinois
TO SOUND STATE REGULATION. I THINK STATE REGULATORS ARE DOING A GOOD JOB. WITH THAT I WOULD LIKE TO THANK AND WELCOME TO TODAY'S HEARING ILLINOIS DEPARTMENT...
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| 00:20:11 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
REGULATOR. I WORKED WITH CONGRESSMAN ROYCE ON LEGISLATION TO ESTABLISH A FEDERAL REGULATOR FOR THE INSURANCE
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| 00:20:17 |
Bean, Melissa - U.S. Representative, [D] Illinois
INDUSTRY. LAST CONGRESS OUR BILL WAS FOCUSED ON CONSUMER CHOICE AND PROTECTIONS, ADVANTAGES FOR AGENTS AND INDUSTRY EFFICIENCIES. MUCH HAS CHANGED IN...
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| 00:24:00 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
COMPANY IS NECESSARILY AN AGENT OF SYSTEMIC RISK TO THE ENTIRE
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| 00:24:05 |
Hensarling, Jeb - U.S. Representative, [R] Texas
ECONOMY. IF I DID BELIEVE THAT, I CAN THINK OF NO GREATER SELF-FULFILLING PROPHECY THAN TO DESIGNATE A FIRM SYSTEMICALLY RISKY. THEN IT BECOMES SYSTEMICALLY...
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| 00:26:24 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
WITHOUT OBJECTION, THEIR WRITTEN STATEMENTS WILL BE MADE PART OF THE RECORD. FIRST ON THE PANEL WE HAVE THE HONORABLE PETER SKINNER, A MEMBER OF THE...
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| 00:27:06 |
Skinner, Peter - Member
SKINNER. I'VE BEEN A MEMBER OF THE EUROPEAN PARLIAMENT SINCE 1994. THIS MONTH I WAS ELECTED FOR MY FOURTH TERM. I'M A MEMBER OF THE ECONOMIC AND MONETARY...
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| 00:33:55 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
STATE OF ILLINOIS. I SPEAK TODAY ON BEHALF OF THE FLAGSAL ASSOCIATION OF INSURANCE COMMISSIONERS. THE INSURANCE INDUSTRY, EVEN IN THESE DIFFICULT TIMES,...
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| 00:34:09 |
McRaith, Michael - Director
FINANCIAL SECTORS. WE LIKELY AGREE INSURANCE REGULATION MUST NOT ONLY SERVE INDUSTRY NEEDS BUT PRIORITIZE U.S. CONSUMERS. CONSUMER PROTECTION HAS BEEN,...
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| 00:39:10 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
OF AMERICA, THE TRADE GROUP REPRESENTING THE PRIVATE MORTGAGE INSURANCE INDUSTRY. MORTGAGE INSURANCE ENABLES FOREIGNERS TO RESPONSIBLY BUY HOMES WITH...
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| 00:39:22 |
Bryce, Teresa - President
20% DOWN PAYMENT. MANY OF THESE ARE FIRST-TIME AND LOWER-INCOME BORROWERS. SINCE 1957, MORTGAGE INSURANCE HAS HELPED OVER 25 MILLION FAMILIES PURCHASE...
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| 00:44:22 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
FINANCIAL SECURITY HOLDINGS OR FSA AND SHORT GUARANTEED CORPORATION WHICH IS EXPECTED TO COMPLETE THE ACQUISITION OF FSA ON JULY 1st. WE APPRECIATE...
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| 00:44:34 |
McCarthy, Sean - President and CEO
IMPROVE OVERSIGHT OF THE INSURANCE INDUSTRY AND A RESTRUCTURING OF THE FEDERAL GOVERNMENT'S ROLE WITH REGARD TO INSURANCE PRODUCTS. AS MONO-HEINE INSURANCE...
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| 00:49:56 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
PRESIDENT AND GENERAL COUNSELOR OF TRAVELERS. TRAVELERS OFFERS A WIDE VARIETY OF PROPERTY, CASUALTY, INSURANCE PRODUCT AND ASSURITY AND
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| 00:50:05 |
Spence, Kenneth - Executive Vice President
RISK MANAGEMENT SERVICES TO NUMEROUS BUSINESS WITH INDIVIDUALS AND ABROAD. OUR PRODUCTS ARE DISTRIBUTED PRIMARILY THROUGH THE U.S., THROUGH INDEPENDENT...
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| 00:55:34 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
MANAGEMENT TOOL FOR INSURANCE COMPANIES TO IMPROVE THEIR CAPACITY AND FINANCIAL PERFORMANCE, ENHANCED FINANCIAL SECURITY AND REDUCE FINANCIAL VOLATILITY.
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| 00:55:43 |
Nutter, Franklin W. - President
IT IS THE MOST EFFICIENT CAPITAL MANAGEMENT TOOL AVAILABLE TO INSURERS. RE INSURANCE IS A GLOBAL BUSINESS AND ENCOURAGING THE PARTICIPATION OF REINSURERS...
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| 01:01:55 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
INSURANCE BUSINESS ON SYSTEMIC RISK AND ITS IMPLICATIONS FOR FINANCIAL REGULATORY REFORM. I'M PAT BAIRD, CEO OF AGON USA. I WORK AND LIVE IN CEDAR RAPIDS,...
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| 01:02:08 |
Baird, Patrick - Official
LEAD OFF WITH THE PREMISE THAT THE LIFE INSURANCE INDUSTRY IS BY ANY REASONABLE MEASURE, SYSTEMICALLY IMPORTANT. FROM THAT, IT FOLLOWS WHATEVER REGULATORY...
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| 01:08:07 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
SUBCOMMITTEE. IT IS AN HONOR TO TESTIFY BEFORE YOU TODAY ON THESE IMPORTANT ISSUES. MY NAME IS JOHN HILL AND I AM PRESIDENT AND CHIEF OPERATING...
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| 01:08:22 |
Hill, John - Official
INSURANCE CARRIER FOR THE TAXI CAB INDUSTRY. ALTHOUGH WE NO LONGER INSURE TAXIS, WE EMPLOY 240 INDIVIDUALS AND WRITE IN 22 STATES. WE VERY MUCH REMAIN...
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| 01:09:52 |
Hill, John - Official
SERVE OUR POLICYHOLDERS THE SAME TODAY AS BEFORE THE ECONOMIC CRISIS. IF YOU EXCLUDE THE VERY FEW COMPANIES THAT ARE LINKED TO FINANCIAL MARKETS. OUR...
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| 01:14:00 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
YOU ON THE SPOT FOR JUST A MINUTE. IN
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| 01:14:03 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
PENNSYLVANIA WE HAD A COMPANY IN 2001, THE RELIANCE OF PENNSYLVANIA. I IMAGINE YOU'RE FAMILIAR WITH IT. MR. SAUL STEINBERG WHO TOOK THE INSURANCE PROCEEDS...
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| 01:14:48 |
McRaith, Michael - Director
WHAT -- HOW WOULD YOU SAY THE EFFECT OF WHAT HAPPENED THERE WITH THAT PARTICULAR COMPANY, WAS THAT
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| 01:14:56 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
A FAILURE OF THE STATE REGULATION, STATE TO STATE? THAT WOULD HAVE OCCURRED IF WE'D HAD A FEDERAL REGULATOR IN MACE OR DO YOU SEE ANY DIFFERENCE? THE...
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| 01:15:30 |
McRaith, Michael - Director
AND ULTIMATE HE SUFFER THE DEMISE OR DEMISE SIMILAR TO RELIANT. A FEDERAL REGULATOR WOULD NOT HAVE ASSISTED OR PREVENTED THAT SOLUTION. I'M NOT FAMILIAR...
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| 01:16:49 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
INTO
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| 01:16:51 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
BEING IN 2012. WHAT IT'S DEPENDENT UPON IS SOMETHING CALLED EQUIVALENCE AND WHEN I STARTED THAT EQUIVALENCE FROM THE EUROPEAN PERSPECTIVE IS LOOKING...
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| 01:17:06 |
Skinner, Peter - Member
NOT THE LETTER ON THE DOT OF THE I, AND FOR THAT WE NEED TO FIND A SINGLE VOICE FROM THE EU LEVEL BECAUSE WE ARE ACTUALLY ONLY PERMITTED TO GET...
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| 01:18:56 |
Skinner, Peter - Member
COMPANIES LIKE THE EUROPEAN LEVEL THAT HAVE THEIR OWN LAWS, THEIR OWN REGULATIONS AND THEIR OWN STANDARDS AND WE JUST INTRODUCED SOLVENCY, TOO, AND...
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| 01:19:50 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
YOU'RE TALKING ABOUT WILL GO INTO EFFECT IN 2012,
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| 01:19:52 |
Garrett, Scott - U.S. Representative, [R] New Jersey
RIGHT? IF WE WERE HAVING A PANEL LIKE THIS BACK OVERSEAS, WOULD THAT BE THE SAME TESTIMONY THAT WE WOULD HEAR OVER THIS AS WELL THAT THE PROBLEMS IN...
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| 01:20:34 |
Skinner, Peter - Member
SECURITIZATION ISSUE IS ACTUALLY A KIND OF A RE INSURANCE IN ITSELF, ISN'T IT? THE SPREAD OF RISK. SO THE INSURANCE INDUSTRY AS A WHOLE IS NOT IMMUNE...
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| 01:21:08 |
Garrett, Scott - U.S. Representative, [R] New Jersey
CERTAIN COMPANIES AND YOU HAVE TO START TALKING ABOUT THE INDUSTRY AS A WHOLE. >> THANK YOU. I'LL RUN DOWN THE ROAD. MR. McGRATH, YOU WERE MAKING YOUR...
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| 01:21:31 |
Garrett, Scott - U.S. Representative, [R] New Jersey
RIGHT, CHANGING WHAT YOU'RE DOING AS AN ORGANIZATION IN THE AREAS ALREADY, IF I HEARD YOU RIGHT. >> THAT'S CORRECT. >> GEE, WE'RE ALREADY DOING THAT ...
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| 01:22:00 |
McRaith, Michael - Director
WITH OUR INTERNATIONAL COUNTERPARTS
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| 01:22:03 |
Garrett, Scott - U.S. Representative, [R] New Jersey
ON EVERY CONTINENT IN MULTIPLE FORUMS. MY TESTIMONY, CONGRESSMEN,
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| 01:22:09 |
McRaith, Michael - Director
REGARDING THE OFFICE OF INSURANCE INFORMATION REFLECTED THE REALITY WE KNOW WHICH IS NOT A QUESTION OF STANDARDS OR SUPERVISION OR REGULATION. IT'S...
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| 01:23:15 |
Garrett, Scott - U.S. Representative, [R] New Jersey
NOT APPLY TO INSURANCE PER SE. >> I'M SORRY. NOT TO ANY ONE COMPANY. THE SECTOR, OF COURSE, IS SIGNIFICANT. OKAY. SO MAYBE THAT ANSWERS THE QUESTION....
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| 01:23:39 |
McRaith, Michael - Director
AGREE. WE THINK THE ENTIRE INDUSTRY IS SYSTEMIC IMPORTANCE AND NO ONE COMPANY IS. >> FOR ANYONE ON PANEL. ONE OF THE PROPOSALS COMING OUT
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| 01:23:47 |
Baird, Patrick - Official
OF THE WHITE HOUSE SEEMS TO BE A
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| 01:23:50 |
Garrett, Scott - U.S. Representative, [R] New Jersey
SYSTEMIC RISK REGULATOR AND IT COULD GO INTO
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| 01:23:53 |
Garrett, Scott - U.S. Representative, [R] New Jersey
THE FEDERAL RESERVE WHICH A LOT OF US DISAGREE WITH AND ASSUME
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| 01:23:55 |
Baird, Patrick - Official
THAT HAPPENS AND YOU PUT INTO THE FEDERAL RESERVE AND ASSUME FOR THE SAKE OF ARGUMENT THAT IT ALSO HAS AN INSURANCE COMPONENT. DOES ANYONE ON THE PAN...
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| 01:24:04 |
Garrett, Scott - U.S. Representative, [R] New Jersey
YOU MAY HAVE A BANK REGULATOR WHO HAS NO PAST EXPERIENCE OR WHAT HAVE YOU DEALING WITH THE INSURANCE INDUSTRY TO BE BASICALLY -- YOUR SUPERVISOR IN...
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| 01:24:39 |
Hill, John - Official
MARKET-ORIENTED PRODUCTS AND ANY FIRM THAT'S ENGAGING THOSE PRODUCTS SHOULD FALL UNDER THE PURVIEW OF THE SYSTEMIC RISK REGULATOR, BUT TO JUST ISOLATE...
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| 01:25:31 |
McCarthy, Sean - President and CEO
AGAIN, FINANCIAL GUARANTEE, WE HAVE ONE NAIL AND WE'RE TRYING TO HIT IT. >> RIGHT. >> THE MULTILINES HAVE A LOT OF DIFFERENT KINDS OF RISKS THAT THEY'RE...
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| 01:25:48 |
Garrett, Scott - U.S. Representative, [R] New Jersey
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| 01:25:50 |
McCarthy, Sean - President and CEO
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| 01:25:52 |
McCarthy, Sean - President and CEO
|
| 01:25:55 |
Garrett, Scott - U.S. Representative, [R] New Jersey
LOT. >> I JUST WANTED TO DIRECTLY
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| 01:25:57 |
McCarthy, Sean - President and CEO
ADDRESS YOUR QUESTION. I THINK THAT IS A CONCERN TO THE LIFE INSURANCE INDUSTRY HOWEVER IT IS RESOLVED IF THE CONGRESS CREATES A FEDERAL FUNCTIONAL...
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| 01:26:07 |
Garrett, Scott - U.S. Representative, [R] New Jersey
THAT COOPERATE WITH ONE ANOTHER TO THANK THE CREATION OF THE FEDERAL FUNCTIONAL REGULATOR WOULD GIVE THE FEDERAL AGENCY AND THE PECKS PER TEES TO...
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| 01:26:16 |
Baird, Patrick - Official
AND COOPERATE AND GIVE INFORMATION TO THE SYSTEMIC REGULATOR. >> BUT ABSENT THAT? >> ABSENT THAT, THAT IS A CONCERN AND I THINK IT'S INCOMPLETE. >> CONGRESSMAN,...
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| 01:26:39 |
Garrett, Scott - U.S. Representative, [R] New Jersey
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| 01:26:40 |
Baird, Patrick - Official
INDUSTRY. SO THE REGULATORS HAVE EXPERTISE EXPERTISE, BUT SHOULD WANT BE DISPLACED.
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| 01:26:48 |
McRaith, Michael - Director
ONE OF THE PRIORITIES OF ANY SYSTEMIC REGULATOR IS TO RECOGNIZE AND VALUE THE EXPERTISE AND FUNCTIONAL REGULATOR, FACILITATE COMMUNICATION AMONG THOSE...
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| 01:27:25 |
Garrett, Scott - U.S. Representative, [R] New Jersey
THE ACRONYM TRIA? TRIA
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| 01:27:28 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
WAS THE ONE THAT THAT THE INSURANCE COMPANY HAD A PASS AND EVERYONE WAS AFRAID THEY WOULD TAKE DOWN THE ECONOMY AT THAT TIME. DID ANYBODY HERE WHO NOW...
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| 01:28:13 |
Bryce, Teresa - President
HAVE, I GUESS IS A BETTER QUESTION? >> SO WE SHOULD
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| 01:28:16 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
HAVE. >> AND I
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| 01:28:19 |
Bryce, Teresa - President
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| 01:28:20 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
AGREE. >> GO
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| 01:28:21 |
Bryce, Teresa - President
RIGHT AHEAD. THE ISSUE WITH TERRORISM IS THE ABSOLUTE IMPOSSIBILITY
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| 01:28:25 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
OF PREDICTING THE RISK. WHAT TRIA DOES IS FACILITATE THE PROPERTY AND CASUALTY
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| 01:28:32 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
MARKET THAT WOULD NOT EXIST, MANHATTAN, CHICAGO AS MAJOR URBAN
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| 01:28:37 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
AREAS WOULD NOT HAVE ACCESS TO COVERAGE FOR TERRORISM
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| 01:28:40 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
|
| 01:28:41 |
McRaith, Michael - Director
AND EVENTS IN THE -- COMPANIES CAN EXCLUDE THAT. >> IT WAS THE ABILITY TO ASCERTAIN THE RISKS SIMILAR TO THE ABILITY TO ASCERTAIN THE RISK ON CDO THE...
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| 01:29:04 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
SYSTEMATIC RISK. THAT'S WHAT I HEARD. I DON'T THINK WE'VE HEARD THEM SAY ANYTHING DIFFERENT. HAS ANYBODY HERE HEARD OF THE COMPANY AIG? >> I KNOW IT...
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| 01:29:34 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
THAT WAS INTO SO MANY THINGS THAT THE STATE REGULATORS CHOSE NOT TO
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| 01:29:39 |
McRaith, Michael - Director
REGULATE. THE FEDERAL GOVERNMENT DIDN'T HAVE ANYBODY TO REGULATE AND THE STATES COLLECTIVELY SAID WE DON'T NEED TO LOOK AT
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| 01:29:44 |
McRaith, Michael - Director
WHAT AIG'S
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| 01:29:46 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
DOING. WE ONLY LOOK AT THIS SLICE, THIS SLICE AND THIS SLICE. THAT'S ALL AND WHEN THOSE SLICES WORKED FINE. >> ACTUALLY, CONGRESSMAN, THE INSURANCE...
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| 01:30:14 |
McRaith, Michael - Director
THE COMPMPIES. NO ONE WAS LOOKIKING ATT WHAT WAS HAPPENING G TH T TONEY COMING IN, , HOW THEYEREREESTINGNG .. THE STATE D DIDN'T
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| 01:30:22 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
D DO IT AND THAT'S
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| 01:30:23 |
McRaith, Michael - Director
WHERE THE SYSTEMI REREGULATOR COMES IN. SO O COMPANY, DEPENDING ON WHAT THEY DO,EPEPENDING ON WHO LOOKS AT
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| 01:30:30 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
|
| 01:30:31 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
THEM, I GUESS, SO THEREFORE, THOUGH I APPRECIATE THIS HEARING, I'M NOT QUITE SURE WHAT WE'RE TALKING ABOUT EXCEPT A UNANIMOUS OPINION THAT THERE IS...
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| 01:31:55 |
McRaith, Michael - Director
SYSTEMIC REGULATOR. I DON'T EVEN
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| 01:31:57 |
Capuano, Michael - U.S. Representative, [D] Massachusetts
LIKE THE WORD REGULATOR BECAUSE I THINK THAT IMPLIES OVERACTIVITY. AT LEAST A SYSTEMIC MONITOR, MAYBE A REGULATOR TO REVIEW WHAT'S GOING ON. DOES...
|
| 01:32:40 |
Unidentified Speaker, -
A SYSTEMIC
|
| 01:32:41 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
RISK REGULATOR FOR INSURANCE, AND I
|
| 01:32:44 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
THINK IT'S IMPORTANT THAT WE KEEP THAT IN MIND AND WE ARE SOMETIMES COMBINING APPLES AND ORANGES HERE. I WANT TO SHIFT GEARS A LITTLE BIT AND TALK...
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| 01:34:35 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
THERE IS NO DIRECT LEGAL OBLIGATION TO THE CONSUMER AND IT TENDS TO FOCUS SOLVENCY AND PRUDENTIAL REGULATION. IT WOULD APPEAR NOT TO APPLY TO RE...
|
| 01:34:46 |
Spence, Kenneth - Executive Vice President
YOU, MR. BAIRD. >>
|
| 01:34:48 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
WHEN WE DESIGN A PRODUCT WE FEEL
|
| 01:34:50 |
Nutter, Franklin W. - President
WE ARE MAKING PROMISES TO OUR CUSTOMERS TO DELIVER BENEFITS 20, 30, 40 YEARS INTO THE FUTURE. AT THE POINT IN TIME WHEN WE'RE DESIGNING THAT PRODUCT...
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| 01:35:07 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
SURE WE'RE DESIGNING PEOPLE TO MAKE
|
| 01:35:09 |
Baird, Patrick - Official
SURE SOMEBODY VALUES TO SEPARATE THAT AND HAVE AN AGENCY ONLY FOCUSED ON THE CONSUMER SIDE WE BELIEVE IS NOT COMPLETE. IF WE DIDN'T HAVE THE DISCIPLINES...
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| 01:35:46 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
A VACUUM AND NOT PART OF A FEDERAL FUNCTIONAL REGULATOR AND INSOLVENCY AND CAPITAL MARKETS RISK THAT THEIR REGULATION WOULD NOT BE COMPLETE AND IT WOULD...
|
| 01:35:59 |
Baird, Patrick - Official
REGULATORS THAT THE REGULATIONS ARE BIFURCATED AND THAT WOULD KEEP US FROM DESIGNING A PRODUCT THAT THE CUSTOMER NEEDS MOST. >> WE REPRESENT THE PROPERTY...
|
| 01:36:30 |
Hill, John - Official
FOR MR. McGRATH. YOU MENTIONED THAT YOU WANTED TO COMMENT ON THE SOLVENCY TWO FRAMEWORK, AND I WONDER IF YOU'D HAD THE OPPORTUNITY TO LOOK AT THE CONSEQUENCES...
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| 01:36:43 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
HAVE FOR STATES. >> YES. THANK YOU,
|
| 01:36:47 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
CONGRESSMEN. >> FIRST, I DO WANT TO COMMEND MR. SKINNER AND HIS COLLEAGUES IN THE EUROPEAN UNION FOR DEVELOPING SOLVENCY TO REMAINS AND ITS FACENT STAGES,...
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| 01:37:05 |
McRaith, Michael - Director
2012. OF
|
| 01:37:08 |
McRaith, Michael - Director
COURSE, WE HAVE 64,000 COMPANY YEARS OF REGULATING SOLVENCY. SO WE LOOK FORWARD TO WORKING WITH THE EU AS THEY FURTHER DEVELOP THEIR APPROACH....
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| 01:38:28 |
Price, Thomas "Tom" - U.S. Representative, [R] Georgia
TO BE MADE AT THE COUNTRY
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| 01:38:29 |
Nutter, Franklin W. - President
LEVEL, THIS WOULD MAKE IT ALMOST IMPOSSIBLE TO FIND THE USA EQUIVALENT UNDER SOLVENCY 2 UNLESS CHANGES ARE MADE TO THE REGULATORY FRAMEWORK IN THE U.S....
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| 01:39:15 |
Skinner, Peter - Member
THEM RATIFIED IN THE STATUE LOOK. FOR ONCE IT HAS BEEN ADOPTED IN THE EUROPEAN PART WHICH IT WAS ON THE 22nd OF APRIL OF THIS YEAR WAS LAW. IT NOW HAS...
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| 01:41:44 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
WHICH MAKES THIS HEARING ALL THE MORE IMPORTANT. I'VE
|
| 01:41:48 |
Hinojosa, Ruben - U.S. Representative, [D] Texas
ALWAYS SUPPORTED STATE REGULATION OF INSURANCE AND I WILL CONTINUE TO RALLY BEHIND THE REGULATORY CONSTRUCH, IF A FAILURE BASED AND UP RATING IN THE UNITED...
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| 01:43:43 |
McRaith, Michael - Director
IT'S NOT A SINGLE REGULATOR, IT IS MULTIPLE REGULATORS WORKING TOGETHER IN A COORDINATED FASHION WITH A NATIONAL SYSTEM OF SOVEREIGNTY REGULATION,...
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| 01:46:10 |
Hinojosa, Ruben - U.S. Representative, [D] Texas
COMPANY THAT WAS REGULATED BY THE FED. THE INSURANCE OPERATIONS WERE NOT REGULATED BY
|
| 01:46:18 |
Spence, Kenneth - Executive Vice President
THE FED BUT THEY DID SOUNDNESS AND SAFETY REVIEWS OF THE COMPANY, INCLUDING THE INSURANCE OPERATIONS. AND THAT PROCESS DURING THAT PROCESS IT DEMONSTRATED...
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| 01:47:34 |
Hinojosa, Ruben - U.S. Representative, [D] Texas
AIG SECURITIES LENDING PROGRAMS
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| 01:47:37 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
INVESTED IN MORTGAGE
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| 01:47:38 |
Royce, Edward "Ed" - U.S. Representative, [R] California
BACKED SECURITIES AND TOOK THE MONEY FROM INSURANCE SUBSIDIARIES AND AIG LIFE INSURERS SUFFERED 20 BILLION IN LOSSES RELATED TO THEIR SECURITIES LENDING...
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| 01:50:18 |
Spence, Kenneth - Executive Vice President
SKINNER, YOU'VE SPOKEN
|
| 01:50:19 |
Royce, Edward "Ed" - U.S. Representative, [R] California
AT LENGTH ON THE
|
| 01:50:21 |
Spence, Kenneth - Executive Vice President
NEED TO ESTABLISH A FEDERAL PRESENCE ON INSURANCE IN THE UNITED STATES AS WELL AS THE PROBLEMS E.U. REGULATEORS HAVE RUN INTO WHEN TRYING TO NEGOTIATE...
|
| 01:50:35 |
Royce, Edward "Ed" - U.S. Representative, [R] California
APPEARS TO BE A CONSENSUS THAT SOMETHING SHOULD BE DONE IN THIS REGARD. TO WHAT DEGREE REMAINS OBVIOUSLY QUESTIONABLE. WHEN IS AN OFFICE OF INSURANCE...
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| 01:51:28 |
Skinner, Peter - Member
TODAY ARE AT THE ROOT LEVEL, THE RISKS IT TAKES AND PREMIUMS IT DOESN'T CHARGE, ET CETERA, ET CETERA, WE NEED SOMETHING STANDARDIZED, HARMONIZED THAT...
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| 01:53:00 |
Royce, Edward "Ed" - U.S. Representative, [R] California
JOURNEY THAT MANY OF US HAVE TAKEN OVER THE LAST SEVERAL MONTHS. I WANTED TO ASK YOU AS AN ALTERNATIVE TO FEDERAL REGULATIONS, SOME HAVE RECOMMENDED...
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| 01:53:12 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
STANDARDS THAT WOULD
|
| 01:53:14 |
McCarthy, Sean - President and CEO
ENFORCE BY THE CURRENT STATE INSURANCE REGULATORY STRUCTURE. WOULD THAT SOLVE THE REGULATORY BURDEN IN AREAS SUCH AS LICENSING, MARKET CONDUCT, AND...
|
| 01:53:48 |
Baird, Patrick - Official
MOVE FROM ONE STATE TO ANOTHER. SO WHEN SOMEONE SUGGESTS THAT FEDERAL MINIMUM STANDARDS IS THE ANSWER, WHAT THAT MEANS IS THOSE MINIMUM STANDARDS WILL...
|
| 01:54:34 |
McCarthy, Sean - President and CEO
OBVIOUSLY, A LOT OF THE INSURANCE COMPANIES DO WANT TO DO GLOBAL MARKETING. THEY ARE GOING TO BE INTO YOUR -- ALL OF THE DIFFERENT COUNTRIES FOR...
|
| 01:55:55 |
Skinner, Peter - Member
GET EFFICIENCICIES INTO THE AREA WITHOUT RUNNING AGAINST RISK. ALL OF THESE THINGS HAVE TO BE BASED UPON WHAT IS FINANCIALLY SOUND AND WHAT IS HOPEFULLY...
|
| 01:57:54 |
McCarthy, Sean - President and CEO
WE'RE DEALING WITH THAT -- I'M SORRY, MY TIME IS UP. THANK YOU, MR. CHAIRMAN. >> AND NOW WE'LL HEAR FROM MISS BIGGER. >> THANK YOU, MR. CHAIRMAN. MR....
|
| 01:58:31 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
TO CONSUMER
|
| 01:58:33 |
Biggert, Judy - U.S. Representative, [R] Illinois
PRODUCTS AND PRACTICES. WHY IS THAT AND WHY SHOULD IT BE THE SAME REGULATOR THAT LOOKS TO SAFETY AND SOUNDNESS AS WELL AS CONSUMER RELATED PRODUCT?...
|
| 01:59:04 |
Baird, Patrick - Official
US. YOU CANNOT SEPARATE AND BIFURCATE STANDARDS FROM SOLVENCY REGULATION. >> THANK YOU. THEN DIRECTOR McRAITH, WHAT SORT OF COORDINATION TOOK PLACE...
|
| 01:59:32 |
Biggert, Judy - U.S. Representative, [R] Illinois
THERE WAS COORDINATION WITHIN THE DAYS AND WEEKS, OF COURSE THERE'S COORDINATION CONSTANTLY. BUT WE WERE AS WE LEARNED ABOUT THE HOLDING COMPANY PROBLEMS,...
|
| 01:59:48 |
McRaith, Michael - Director
LONDON, WE LEARNED THAT THE HOLDING COMPANY CHALLENGES COULD HAVE IMPLICATIONS FOR THE INSURANCE SUBSIDIARIES. AND IMMEDIATELY NATIONALLY THE REGULATORS...
|
| 02:01:13 |
Biggert, Judy - U.S. Representative, [R] Illinois
UP A SYSTEMIC RISK REGULATORY SYSTEM? >> FIRST, I UNDERSTAND THAT THE E.U. IS WORKING TO BRING TOGETHER 27 DIFFERENT COUNTRIES AND PLAN TO IMPLEMENT...
|
| 02:01:41 |
McRaith, Michael - Director
TIFLY, 64,000 YEARS COMBINED OF COMPANY REGULATION. WE UNDERSTAND THE IMPORTANCE OF WORKING TOGETHER SO THAT THE CONSUMERS IN ILLINOIS UNDERSTAND THE...
|
| 02:03:00 |
Biggert, Judy - U.S. Representative, [R] Illinois
TO THE
|
| 02:03:04 |
McRaith, Michael - Director
DERIVATIVE REGULATIONS, SHOULD AN INSURANCE REPRESENTATIVE OR REPRESENTATIVE BE AT THE
|
| 02:03:08 |
Biggert, Judy - U.S. Representative, [R] Illinois
TABLE AND WHO SHOULD BE AT THE TABLE SHOULD IT BE A ROTATING STATE REGULATOR OR SHOULD IT -- WE SET UP THE OFFICE OF INSURANCE INFORMATION IF WE SET...
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| 02:03:48 |
McRaith, Michael - Director
OF PERSPECTIVE, ABSOLUTELY. >> THANK YOU VERY MUCH. I YIELD
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| 02:03:54 |
Biggert, Judy - U.S. Representative, [R] Illinois
BACK. >> THANK
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| 02:03:58 |
McRaith, Michael - Director
YOU VERY MUCH, MRS. BIGGERT. >> LET ME ASK, WE'RE
|
| 02:04:11 |
Biggert, Judy - U.S. Representative, [R] Illinois
HERE DEBATING THIS LARGELY BECAUSE OF ACTIONS THAT STEMMED FROM THE PROBLEMS AT AIG WITH EXPENSIVE TRADING AND CREDIT
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| 02:04:21 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
DEFAULT SWAPS OUT OF THEIR FINANCIAL PRODUCTS UNIT IN LONDON THAT WAS NOT REGULATED BY
|
| 02:04:31 |
Scott, David - U.S. Representative, [D] Georgia
STATE COMMISSIONERS BUT BY THE FEDERAL GOVERNMENT, THE OFFICE OF THRIFT SUPERVISION. HOWEVER, SOME ARE USING THE COLLAPSE OF AIG TO ARGUE FOR THE CREATION...
|
| 02:05:54 |
McCarthy, Sean - President and CEO
OPEN TO ARBITRAGE, MEANING THAT OUR COMPANIES WOULD HAVE THE ABILITY TO GRAVITATE TOWARDS WHEREVER THEY THINK THE MOST LEVEL PURSUITS WOULD BE. A MANDATORY...
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| 02:07:36 |
Scott, David - U.S. Representative, [D] Georgia
WHAT'S BEST FOR GEORGIA.
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| 02:07:39 |
Scott, David - U.S. Representative, [D] Georgia
WE'RE COMPRISED OF 50 DIFFERENT STATES AND I BELIEVE THAT STATE REGULATION OVER THE INSURANCE INDUSTRY IS A LEGITIMATE REGULATORY ENTITY. BECAUSE...
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| 02:09:25 |
Bryce, Teresa - President
WERE ORIGINATED BUT ALSO TO A LOT OF MACRO ECONOMIC ISSUES THAT WE CAN'T CONTROL, LIKE UNEMPLOYMENT, ET CETERA. YET, WE'RE IN A POSITION TO BE ABLE...
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| 02:10:34 |
Nutter, Franklin W. - President
RELATIONSHIP AT THE CONSUMER LEVEL YOU WANT, THE LACK OF A FEDERAL REGULATORS CALLS OUTS FOR THE PROBLEMS ASSOCIATED WITH INTERNATIONAL AGREEMENTS,...
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| 02:11:24 |
McRaith, Michael - Director
CLAIM. REINSURANCE ISNN ESSENTIAL PART OF SOLVENCY AND SOLVENCY IS T CORE MISSION, CORE PURPOSE OF CONSUMER PROTECTION IN EACH STATE. AND FOR THAT...
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| 02:12:00 |
Scott, David - U.S. Representative, [D] Georgia
ABOUT REGULATION. AND I WON'T GO INTO
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| 02:12:03 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
THE HARMONY BECAUSE THERE'S NOT TIME, WE KNOW WHAT HAS WHEN ASIA GETS IN AND SOUTH AMERICA GETS IN, REALLY TOO
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| 02:12:11 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
LARGE TO EVEN DISCUSS TOO FAR
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| 02:12:13 |
Posey, Bill - U.S. Representative, [R] Florida
HERE TODAY. BUT AS YOU'VE HEARD MOST OF OUR COLLEAGUES DISCUSS TODAY, MANY OF US BELIEVE CLEARLY THAT THE REGULATION OF INSURANCE IS A STATE'S RIGHT,...
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| 02:16:53 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
SO ORDERED. >> I WOULD ALSO LIKE TO ACKNOWLEDGE SOME OF THE TESTIMONY IN RESPONSE TO SOME OF MY COLLEAGUE'S QUESTION THAT NO ONE IS
|
| 02:17:03 |
Bean, Melissa - U.S. Representative, [D] Illinois
ADVOCATING FOR A NATIONAL INSURANCE CHARTER IN ANY WAY IS SUGGESTING THAT WE LOWER CONSUMER PROTECTIONS. IN FACT WE'RE STARTING AT THE BASELINE
|
| 02:17:13 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
NIC MODELS AND IMPROVING BY ADDING
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| 02:17:16 |
Bean, Melissa - U.S. Representative, [D] Illinois
A NATIONAL INSURANCE COMMISSIONERS THAT WOULD WOULD HAVE OVERSIGHT OF INFORMATION, BOTH FOR INSURANCE AND NONINSURANCE SUBSIDIARIES, LIKE AIG FINANCIAL...
|
| 02:18:28 |
Bean, Melissa - U.S. Representative, [D] Illinois
INSURANCE WAS WORKING TO REDUCE THE LEVEL OF SECURITIES LENDING IN THE AIG SUBSIDIARY BEFORE THE CRISIS. THE CRISIS, REMEMBER,
|
| 02:18:40 |
McRaith, Michael - Director
WAS A RESULT OF ESSENTIALLY A COLLATERAL CALL ON THE AIG HOLDING COMPANY RESULTING FROM THE CREDIT DEFAULT SWAPS. THIS WOULD NOT HAVE BEEN A PROBLEM...
|
| 02:19:30 |
Bean, Melissa - U.S. Representative, [D] Illinois
STANDARDS IN THAT LAST IMPROVEMENT IS ONGOING.
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| 02:19:33 |
McRaith, Michael - Director
IN TERMS OF $44 BILLION, IT'S IMPORTANT TO UNDERSTAND THAT EACH INSURER, OF COURSE, HAS SIGNIFICANT CAPITAL REQUIREMENTS TO BEGIN WITH. THEIR ASSETS...
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| 02:21:37 |
Bean, Melissa - U.S. Representative, [D] Illinois
TO THE INDUSTRY TO GET PASSED ONTO THE 50 STATE SYSTEM. THANK YOU AND I YIELD BACK. >> THANK YOU VERY MUCH, MRS. BEAN. NOW THE GENTLEMAN FROM ILLINOIS....
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| 02:22:09 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
POSITION LATER ON WHERE YOU'RE COMPLAINING THAT THE FEDERAL GOVERNMENT WENT TOO
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| 02:22:14 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
FAR. AND I THINK MR. ROYCE IN HIS OWN QUESTIONS QUESTIONS WENT BEYOND HIS OWN BILL IN SETTING UP INSURANCE INFORMATION AND THEN HIS QUESTION AND THIS...
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| 02:23:38 |
McRaith, Michael - Director
COMPANY ACT IS THAT THAT INSURER, THE LIFE INSURERS CANNOT RELEASE CAPITAL TO THE HOLDING COMPANY TO SUPPORT THE HOLDING COMPANY WITHOUT REGULATOR...
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| 02:24:12 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
AIG IN OUR CONSERVATIVE ESTIMATE HAD 247 DIFFERENT COMPANIES. 71 OF THOSE WERE U.S. BASED INSURANCE COMPANY. EACH ONE WAS INDEPENDENTLY FINANCIALLY...
|
| 02:24:29 |
McRaith, Michael - Director
LEASING COMPANY, THOSE WERE REGULATED IN OTHER WAYS BY OTHER AGENCIES IN WHICH THE INSURANCE COMPANIES IN THE INSURANCE COMPANIES WERE NOT THREATENED...
|
| 02:25:03 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
FINANCIAL REGULATORS IN THIS COUNTRY WOULD SAY EXACTLY THAT. >> WHY WOULD ANYBODY WANT TO REGULATE THE LIFE INSURANCE COMPANY ON A FEDERAL LEVEL? HOW...
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| 02:25:22 |
McRaith, Michael - Director
LEVEL? >>> OUR POSITION IS THAT IT CANNOT BE. YOUR COLLEAGUES HAVE POINTED
|
| 02:25:28 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
OUT NUMEROUS EXAMPLES OF WHY THAT CANNOT BE THE CASE. I WAS ASKED BY RELIANCE COMPANY AND WOULD A FEDERAL REGULATORS HAVE DISCOVERED THE MISCONDUCT ...
|
| 02:25:46 |
McRaith, Michael - Director
THE MISCONDUCT OF MR. MADOFF EITHER. >> IF I COULD STOP YOU RIGHT THERE. THAT'S MY POINT. THE SEC, THE MAN -- THE WHISTLEBLOWER, CAN'T THINK OF HIS NAME...
|
| 02:26:09 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
SEC FOR FIVE OR SIX OR SEVEN YEARS AND NO ONE WOULD LISTEN. THE AUTHORITY AND REGULATORS WERE IN PLACE BUT THEY JUST FAILED. AND THE SAME THING WITH...
|
| 02:28:38 |
Baird, Patrick - Official
YEARS, LONG BEFORE AIG BECAME
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| 02:28:40 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
THE HOUSEHOLD NAME AND LONG BEFORE THERE WAS
|
| 02:28:42 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
A FINANCIAL
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| 02:28:44 |
Baird, Patrick - Official
CRISIS. AND WE'RE
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| 02:28:46 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
UP HERE ADVOCATING FOR A FEDERAL
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| 02:28:48 |
Baird, Patrick - Official
CHARTER BECAUSE WE THOUGHT WE COULD SERVE OUR CUSTOMERS, THOSE WHO DO BUSINESS ON A NATIONAL BASIS, MUCH OF THE LIFE INSURANCE BASIS BETTER. AS CONGRESS...
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| 02:30:19 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
YOU QUESTIONS ABOUT WHETHER WE SHOULD HAVE A FEDERAL REGULATOR VERSUS STATE REGULATORS FOR
|
| 02:30:24 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
INSURANCE. I DO WANT TO TALK TO YOU AND ASK UT QUESTIONS ABOUT THE SUBJECT OF SYSTEMIC
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| 02:30:28 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
RISK. YOU'RE A
|
| 02:30:29 |
Manzullo, Donald "Don" A. - U.S. Representative, [R] Illinois
PANEL OF MEMBERS THAT ARE HERE TO REPRESENT THE INSURANCE
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| 02:30:32 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
INDUSTRY AND I WOULD LIKE TO START WITH THE SIMPLE QUESTION, ASSUME THAT SYSTEMIC
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| 02:30:36 |
Grayson, Alan M. - U.S. Representative, [D] Florida
RISK REFLECTS THE IDEA THAT THE FAILURE OF ONE PARTICULAR COMPANY WOULD CAUSE ITS CREDITORS TO ALSO FAIL, TO GO BANKRUPT AND REVERB RATE THROUGHOUT...
|
| 02:31:26 |
McRaith, Michael - Director
ANY SYSTEMIC RISK. >> AS A GROUP DO THEY POSE SYSTEMIC RISK? >> AS A HOLDING COMPANY, ITS FINANCIAL PRODUCTS DIVISION, WHICH
|
| 02:31:34 |
Grayson, Alan M. - U.S. Representative, [D] Florida
OUT OF LONDON, WHICH IS NOT APPROPRIATELY REGULATED AND NOT A MATTER
|
| 02:31:40 |
McRaith, Michael - Director
OF STATE INSURANCE REGULATION, BY THE WAY, THAT CLEARLY PRESENTED SYSTEMIC RISK TO THE COUNTRY. >> WHAT YOU'RE SAYING
|
| 02:31:48 |
Grayson, Alan M. - U.S. Representative, [D] Florida
IS THAT ONLY THE FINANCIAL PRODUCTS SECTION OF
|
| 02:31:52 |
McRaith, Michael - Director
AIG PRESENTED SYSTEMIC RISK AND NOT AN INSURANCE OPERATION IN YOUR VIEW, IS THAT CORRECT? >> ACCORDING TO THE DEFINITION YOU PROVIDED OF SYSTEMIC RISK,...
|
| 02:32:09 |
Grayson, Alan M. - U.S. Representative, [D] Florida
POSE SYSTEMIC RISK TO THE SYSTEM? >> THANK YOU, CONGRESSMAN. I ESSENTIALLY AGREE WITH MR. McRAITH, ON AN AGGREGATED BUSINESS, THEY COULD ON
|
| 02:32:22 |
McRaith, Michael - Director
A WHOLE IF THERE WERE A NATURAL KA
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| 02:32:27 |
Grayson, Alan M. - U.S. Representative, [D] Florida
TAS TROPHY OF SIGNIFICANCE OR IF THE EVENT OF A TERRORIST ATTACK. >>
|
| 02:32:34 |
Spence, Kenneth - Executive Vice President
WELL, THAT'S AN INTERESTING POINT. WHAT YOU'RE SAYING IS NOT THE SCENARIO WE SAW WITH AIG, THAT WOULDN'T POSE THE KIND OF SYSTEMIC RISK YOU'RE TALKING...
|
| 02:32:54 |
Grayson, Alan M. - U.S. Representative, [D] Florida
TALKING ABOUT FOR INSTANCE, A NUCLEAR BLAST, HUNDREDS OF BILLIONS OF LOSSES ON INDUSTRY. AT THAT POINT DO YOU THINK THAT WOULD BE A SYSTEMIC RISK...
|
| 02:33:29 |
Spence, Kenneth - Executive Vice President
WOULD BE TO TRY TO ENSURE THAT THE EXAMINATION OF INSURANCE
|
| 02:33:38 |
Grayson, Alan M. - U.S. Representative, [D] Florida
COMPANIES' EXPOSURE TO NATURAL CAPS WERE PROPERLY MANAGED, WHETHER THE GRAGS
|
| 02:33:46 |
Spence, Kenneth - Executive Vice President
OF RISKS WERE MANAGED. THERE ARE THINGS TO IMPROVE THE SITUATION, BUT DEPENDING ON THE SITUATION, YOU'RE CORRECT THERE MAY NOT BE MUCH THAT COULD BE...
|
| 02:34:20 |
Grayson, Alan M. - U.S. Representative, [D] Florida
CAN REALLY ANSWER THAT QUESTION. >> AS FAR AS YOU KNOW, WOULD ANY OTHER MAJOR ENTITIES GO BROKE IF YOUR COMPANY WENT BROKE? >> NO, SIR. >>
|
| 02:34:28 |
Spence, Kenneth - Executive Vice President
WHAT ABOUT YOU
|
| 02:34:31 |
Grayson, Alan M. - U.S. Representative, [D] Florida
MR. BARRETT? >> YOU'RE ASKING ME TO USE MY
|
| 02:34:36 |
Spence, Kenneth - Executive Vice President
IMAGINE IMAGINATION AS TO WHAT A SYSTEMIC RISK REGULATOR DOES. >>
|
| 02:34:42 |
Grayson, Alan M. - U.S. Representative, [D] Florida
I'M ASKING THERE ARE ANY CURRENT COMPANIES THAT
|
| 02:34:47 |
Spence, Kenneth - Executive Vice President
WOULD POSE SYSTEMIC RISK IN THE SENSE YOUR COMPANY FAILED SO MANY COMPANIES WOULD FAIL IT WAS A RESULT
|
| 02:34:51 |
Grayson, Alan M. - U.S. Representative, [D] Florida
IN THE MASS DESTRUCTION OF CREDIT IN THIS COUNTRY OR EVEN THE
|
| 02:34:55 |
Baird, Patrick - Official
WORLD, THAT'S THE QUESTION? >> IF ALL ELSE WERE THE SAME, IF THE REASON FOR THE FAILURE DID NOT IMPACT ANY OF THE OTHER COMPANIES, OR CAN I THINK OF...
|
| 02:35:04 |
Grayson, Alan M. - U.S. Representative, [D] Florida
COMPANY OUT THERE IN THE LIFE INSURANCE INDUSTRY, OKAY, AS A REASON THEY WERE GOING TO FAIL DID NOT IMPACT ANY OTHER COMPANY, THE ANSWER IS NO? >> AND...
|
| 02:35:17 |
Baird, Patrick - Official
SAYING THERE ARE CERTAIN SCENARIOS WE WOULD HAVE SOMETHING LIKE A TERRORIST ATTACK A MASS DISASTER, THOSE ARE THE SCENARIOS WE SHOULD BE THINKING...
|
| 02:35:34 |
Grayson, Alan M. - U.S. Representative, [D] Florida
OF CREDIT DEFAULTS AND SO FORTH. >> TO ME THIS HAD BEEN VERY HELPFUL. IF ANY OF YOU WANT TO SUPPLEMENT YOUR COMMENTS, I WOULD BE GRATEFUL TO YOU. MY...
|
| 02:35:50 |
Baird, Patrick - Official
MUCH. >> WE'RE GOING TO TRY ANOTHER ROUND QUICKLY AND THOSE MEMBERS TAKING THEIR FIVE MINUTES IF
|
| 02:35:58 |
Grayson, Alan M. - U.S. Representative, [D] Florida
SHE SO DESIRE. SHE CAN CERTAINLY TAKE LESS IF THEY SO DESIRE. I THINK I'LL HOLD MINE AND PAST OVER AND GO TO MY CO-HOST HERE, MR.
|
| 02:36:12 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
GARRETT OF NEW JERSEY FOR FIVE MINUTES. >> I DON'T WANT TO HOLD UP THE PANEL EITHER. MR. McRAITH, AND I SAW MR. SKINNER -- I SHOULDN'T MAKE COMMENTS,...
|
| 02:36:37 |
Garrett, Scott - U.S. Representative, [R] New Jersey
RAISED THEISH ISSUE, PORTIONS OF THE UNITS WERE OVERSEAS AND LONDON SPECIFICALLY. I BELIEVE I'VE HEARD THAT BEFORE, THAT PART OF THE ISSUE MERE IS THAT...
|
| 02:37:25 |
McRaith, Michael - Director
OF THE STABILITY -- >> I GUESS WHAT I HEARD, MR. SKINNER, YOU CAN COMMENT, WAS THERE FAILURE, NOT ONLY ON THE FEDERAL RESERVE PART OR FEDERAL REGULATORS,...
|
| 02:37:48 |
Garrett, Scott - U.S. Representative, [R] New Jersey
GATHER YOU BELIEVE AIG FUNCTIONED IN THE UNITED STATES, THEY FUNCTIONED COUNTRY BY COUNTRY INSIDE OF EUROPEAN UNION. YOU'RE OVERSEAS AND INSIDE THE...
|
| 02:38:05 |
Skinner, Peter - Member
HAVE TO PUT YOUR HANDS UP AND SAY YOU ARE A GROUP. IF THEY HAD BEEN A GROUP, WE WOULD BE ABLE TO SUPERVISE THAT GROUP IN ITS ENTIRETY, WHATEVER IT DID,...
|
| 02:39:28 |
Garrett, Scott - U.S. Representative, [R] New Jersey
WE NEED TO MOVE TO YOU. YOU HAVE THE OII LEGISLATION IN THE -- AS I UNDERSTAND IT DOES NOT HAVE ALL OF THE OTHER REGULATORY ASPECT OF IT, OII, OFFICE...
|
| 02:40:22 |
Skinner, Peter - Member
TWO APPROACHES AND THE COMMENT WAS MADE -- I DON'T WANT TO PUT WORDS IN HIS MOUTH -- SEES THE NEEDS FOR REGULATIONS WITH REGARD TO THE CONSUMER PROTECTION...
|
| 02:40:38 |
Garrett, Scott - U.S. Representative, [R] New Jersey
YOU COULD SEE THE PROBLEMS ALONG MR. PRICE'S LINE OF THINKING, IF YOU DON'T HAVE CONSUMER ASPECT ON THE SAME LEVEL COMBINED -- I KNOW YOU DON'T WANT...
|
| 02:41:15 |
Skinner, Peter - Member
REGULATOR, YOU WOULD
|
| 02:41:17 |
Garrett, Scott - U.S. Representative, [R] New Jersey
SEE CONFLICTING APPROACHES, IS THAT CORRECT? >> BESIDES THE INEFFICIENCY ONE. BESIDES INEFFICIENCIES, WHEN WE GET IT RIGHT, WHEN WE DESIGN A PRODUCT...
|
| 02:41:44 |
Baird, Patrick - Official
WE HAVE COMMITTEES IN OUR COMPANY THAT WE CALL, WOULD YOU WANT YOUR MOTHER TO OWN A COMMITTEE? SAY IT WOULD BE OUR EQUIVALENT, TO MAKE SURE THE CONSUMER...
|
| 02:43:03 |
Baird, Patrick - Official
COMPELLING STATES TO COMPLY WITH ANY CHANGES
|
| 02:43:07 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
AND RECOMMENDATIONS THAT THE INTERNATIONAL COMMUNITY WOULD
|
| 02:43:12 |
Bean, Melissa - U.S. Representative, [D] Illinois
LIKE TO SEE. THE VALUE OF THE PROCESS IS A COORDINATED INTERACTIVE AGENCY TO WORK WITH OUR INTERNATIONAL COLLEAGUES. THERE ARE 27 COUNTRIES IN THE EU....
|
| 02:44:44 |
McRaith, Michael - Director
THINK MANY LEGISLATORS WOULD ARGUE IN THE GULF STATES OR ON THE PACIFIC COAST. SO THOSE DIFFERENCES WHILE THEY MIGHT PRESENT A SYSTEM, SOME OF THE...
|
| 02:45:26 |
Bean, Melissa - U.S. Representative, [D] Illinois
THAT THIS IS ENTIRELY DISCRIMINATORY AGAINST COMPANIES OPERATING INSIDE THE UNITED STATES WITH AS MUCH AS $40 BILLION WORTH OF COLLATERAL HELD IN STATES...
|
| 02:45:39 |
Skinner, Peter - Member
BEEN A MOVE TO MOVE TOWARD THE RATING PROCESS. THAT'S QUITE DISCRIMINATORY WITH THE HIGHER RATINGS BEING REQUIRED FOR FOREIGN COMPANIES AND VERY MUCH....
|
| 02:46:55 |
Bean, Melissa - U.S. Representative, [D] Illinois
WAS IN THE BEST INTEREST OF THE NAIC, BUT WITH INSURANCE COMPANIES SHOULDN'T HAVE THE OPTION OF A FEDERAL CHART TORE STREAMLINE THEIR OPERATIONS TO...
|
| 02:47:27 |
McRaith, Michael - Director
OPINION ON THIS ONE PANEL ALTHOUGH I APPRECIATE THE EU'S PERSPECTIVE. IN CORPORATION WITH THE NAIC, I DON'T THINK IT'S A MYSTERY TO ANYONE IN THE COUNTRY...
|
| 02:48:43 |
Bean, Melissa - U.S. Representative, [D] Illinois
RIGHT. THERE
|
| 02:48:44 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
HAS BEEN A BIG DISPARITY BETWEEN
|
| 02:48:47 |
Unidentified Speaker, -
THE REQUIREMENTS FOR DOMESTIC AND NON-DOMESTIC
|
| 02:48:52 |
Posey, Bill - U.S. Representative, [R] Florida
REINSURERS. I THINK JUST IN THE LAST COUPLE OF YEARS THAT WE HAVE BEEN SO PLUNDERED AND AMUSED BY THE REINSURERS THAT HAVE DONE BUSINESS TO SOME OF THE...
|
| 02:50:44 |
Skinner, Peter - Member
AND BANKS ARE DOING THE SAME. EVERYBODY MADE MONEY IN THIS. IT WAS THE WRONG INCENTIVE FOR ANY OF THESE THINGS. SO IN TERMS OF HAVING OVERSIGHT, CLEARLY...
|
| 02:52:10 |
McRaith, Michael - Director
AND COUNTER-PARTY CENTERY AND THOSE TWO THINGS IN CONJUNCTION
|
| 02:52:15 |
McRaith, Michael - Director
WOULD HAVE PROHIBITED OR LIMITED THE IMPACT OF THE CRISIS THAT WE'VE SEEN UNTIL NOW. >> MR. POSEY, I WANT TO COME BACK TO YOUR RE INSURANCE COMMENT...
|
| 02:52:43 |
McCarthy, Sean - President and CEO
INSTRUMENTS THEMSELVES. THE DIFFICULTY WITH CREDIT DEFAULT SWAPS WITH AIG WAS LEVERAGE AND THE HUGE NUMBER OF TRANSACTIONS THAT THEY DID AND THE LEVERAGE...
|
| 02:53:49 |
Posey, Bill - U.S. Representative, [R] Florida
THEWOWORL II MEAN, I DON'T BELVEVE ITHTHE TOHH FAIRY OR THE EASTER BNYNY AND D DON'T BELIEVE WE'RE GOING TO C CREEE ANYTHING LIKE THAT EITHER. I I'M...
|
| 02:54:45 |
McRaith, Michael - Director
GOING INTO NEW WATER HERE NOW. I THINK WITH WHAT WE'VE DISCUSSED WITH WHAT WE SAW WITH THE SEC AND WHAT WE SAW WITH THE AGENCIES THAT FAILED TO INVESTIGATE...
|
| 02:55:06 |
Posey, Bill - U.S. Representative, [R] Florida
TO START FROM SCRATCH THE NEW BUREAUCRACY THAT WILL SOLVE THESE PROBLEMS I THINK IS AN UNREALISTIC EXPECTATION. I'M NOT SAYING THERE AREN'T GOOD PEOPLE...
|
| 02:56:26 |
Nutter, Franklin W. - President
IS THE REASON THAT WE THINK IS APPROPRIATE TO HAVE A FEDERAL REGULATOR. MR. McRAY COMMENTED EARLIER THAT THE LACK OF CONSTITUTIONAL AUTHORITY FOR STATES...
|
| 02:57:21 |
Posey, Bill - U.S. Representative, [R] Florida
MAY WISH TO SUBMIT IN WRITING. WITHOUT OBJECT THE RECORD WILL REMAIN OPEN FOR 30 DAYS FOR MEMBERS TO SUBMIT WRITTEN QUESTIONS TO THESE WITNESSES AND...
|
| 02:57:35 |
Kanjorski, Paul E. - U.S. Representative, [D] Pennsylvania
FOLLOWING WRITTEN STATEMENTS WILL BE MADE PART OF THE RECORD OF THIS HEARING. THE CENTER FOR INSURANCE RESEARCH, THE PROPERTY CASUALTY ASSOCIATION...
|
| 02:59:10 |
Garrett, Scott - U.S. Representative, [R] New Jersey
|
| 02:59:21 |
Garrett, Scott - U.S. Representative, [R] New Jersey
|
| 02:59:26 |
Unidentified Speaker, -
|
| 02:59:27 |
Unidentified Speaker, -
THE NOMINEE TO BECOME THE NEW FEDERAL COMMUNICATIONS COMMITTEE CHAIRMAN GOES BEFORE A SENATE PANEL TODAY FOLLOWED BY A NOMINEE FOR FCC MEMBERSHIP....
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.