Insurance Industry Poised To Tear Loophole In Wall Street Reform

[cory777]

Source: Huffington Post

The insurance industry is poised to rip a gaping loophole in financial reform's investor protections, working to insert a provision in the conference committee report that was passed by neither the House nor the Senate.

The measure would exempt securities products created by insurance companies from regulation, leaving the job instead to state insurance commissioners. Insurance companies do a lucrative business in selling annuities that guarantee a return to investors but limit the upside and often come with exorbitant commissions and high surrender fees that make access to the money difficult in times of financial need.

The insertion is being pushed by Sen. Tom Harkin of Iowa, a state with a heavily-concentrated insurance industry. His House ally is Rep. Greg Meeks (D-N.Y.), who often represents corporate interests despite having a heavy trade union presence in his district.

Because of the structure of the conference committee, a Democrat needs to win only one more Democrat and the Republican bloc in order to win support for an amendment. That dynamic makes weakening the bill easier than strengthening it, even though few Republicans are expected to vote for the final bill.

Read more: http://www.huffingtonpost.com/2010/06/22/insurance-industry-poised_n_621072.html

[mbperrin]

1. I wouldn't expect anything less.

and that is sad.

[Autumn]

2. Then why bother with it.

Why am I not even the tiniest bit surprised. That is just disgusting.

[bbgrunt]

3. Harkin eh? they all take turns at trashing a democratic agenda.

[mac56]

4. Profoundly disappointed in Tom Harkin.

That is all.