NU Online News Service, May 20, 1:24 p.m. EDT

WASHINGTON—President Obama is coming closer to his decision to nominate the independent member of the Financial Stability Oversight Council (FSOC) with insurance experience, the Treasury Department says.

In a letter this week to Sen. David Vitter, R-La., Jeffrey Goldstein, undersecretary of the Treasury for domestic finance, says the decision would be made "soon."

Vitter is among a group of senators who asked the White House in February to move promptly to name officials to the FSOC with insurance experience.

The provision of the Dodd-Frank financial-services law mandates that a person with insurance experience be a voting member of the FSOC, which was created to ensure that large financial institutions whose failure could impact the nation's financial stability have extensive additional oversight.

Goldstein oversees the staff that deals with the FSOC, which is headed by Treasury Secretary Timothy Geithner and includes the heads of all federal agencies that oversee financial institutions.

The letter also notes the appointment of Michael McRaith, former Illinois insurance commissioner, as first director of the Federal Insurance Office (FIO). McRaith assumes the FIO position next month.

The letter cites the creation of a new federal-advisory committee on insurance, and says half of its members will be state insurance regulators.

Goldstein says that through the advisory panel, the FIO and the Treasury "will benefit from the deep knowledge and regulatory experience of state insurance regulators, as well as the perspective of industry experts, academics and other stakeholders and affected constituencies."

He adds in the letter, "I appreciate your leadership on this important issue, and I share your determination in making sure the FSOC and Treasury have the benefit of robust insurance experience."