WASHINGTON–The House Financial Services Committee will take a closer look at a number of insurance regulatory issues over the next several weeks, beginning with a hearing on municipal bond issues set for Wednesday, a committee staff member said.
Speaking at the Legislative/Regulatory Conference of the Self Insured Institute of America in Washington today, Kathleen Mellody, counsel to the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, said that bond insurance is “a new topic for many of us here in Washington,” but added that the “ricochet effect” of troubled bond insurers on the economy in general is a concern for lawmakers.
The insurers, whose most risk-free business is municipal bonds, have been in difficulties because of their involvement with derivative investments from the subprime mortgage lending market.
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