WASHINGTON–Treasury Secretary Henry Paulson twice referenced support for an optional federal charter for insurance companies during testimony yesterday on his financial bailout plan for the nation.

During a lengthy questioning period during his testimony before the Senate Banking Committee, Secretary Paulson said he supported creation of an optional federal charter.

His comment was made in response to a question by Sen. Tim Johnson, D-S.D., of his views on the OFC in light of the government need to loan up to $85 billion to American International Group last week.

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