Lawmakers Near Deal on TRIA, May Consider Insurance Capital Standards
As the legislative session draws to a close, it appears that lawmakers in the Senate and House are nearing a deal to reauthorize the Terrorism Risk Insurance Act (TRIA), which is set to expire at the end of the year. While there has been much discussion about a short-term TRIA reauthorization, it seems that lawmakers have been able to reach agreement on most issues that would prevent a longer-term reauthorization. Nevertheless, certain issues must still be resolved. In particular, Democrats are insisting that House Financial Services Committee Chairman Jeb Hensarling (R-TX) drop his demands for $3.5 billion in budget cuts to pay for TRIA.
It is also possible this week that lawmakers may consider legislation on insurance capital standards that would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and ensure that bank-like risk-based capital standards are not applied to insurers.
This Week’s Hearings:
- Tuesday, December 9: The Senate Banking Subcommittee on Housing, Transportation, and Community Development will hold a hearing titled “Inequality, Opportunity, and the Housing Market.”
- Wednesday, December 10: The Senate Banking Committee will hold a hearing titled “Cybersecurity: Enhancing Coordination to Protect the Financial Sector.”
- Wednesday, December 10: The Senate Agriculture Committee will hold a hearing titled “The Commodity Futures Trading Commission: Enforcement and the Future of Derivatives Regulation.” Note that Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad will be the sole witness at the hearing.
CFTC to Hold Meeting of Agriculture Advisory Committee
On Tuesday, December 9, the CFTC will hold a meeting of its Agricultural Advisory Committee (AAC). The meeting will focus on issues related to deliverable supplies of agricultural commodities, as they pertain to position limits, and the agricultural economy.