Rep. Oxley To Retire In 2007

That is because Rep. Bachus this year served as chair of the President's Dinner, which was held by the National Republican Congressional Committee–the fund-raising arm of the House Republican Conference. The dinner raised $9 million for Republican congressional candidates.

Rep. Baker has been in Congress since 1987 and currently heads the most important subcommittee–the Capital Markets, Insurance and Government-Sponsored Enterprises Subcommittee.

Also a candidate is Rep. Deborah Pryce, R-Ohio, who chairs the Domestic and International Monetary Policy, Trade and Technology Subcommittee of the Financial Services panel. Rep. Pryce is a member of the House Republican leadership.

The senior entry is Rep. David Drier, R-Calif., who heads the House Rules Committee and has also been in Congress since 1987.

However, industry lobbyists and congressional staffers believe it is likely that Speaker of the House Rep. Dennis Hastert, R-Ill., will agree to waive the rules and allow Rep. Drier to retain his spot as chair of the Rules Committee to ease tensions within the Republican caucus.

Rep. Oxley has served in Congress since 1987 and was the first chairman of the House Financial Services Committee when the Republicans reorganized House committees in 2001 to combine all financial services oversight in one committee.

Before that, banking regulation and oversight was handled by the House Banking Committee, while securities and insurance regulation and oversight was under the Commerce Committee.

Rep. Oxley won the job for his role in shepherding the Gramm-Leach-Bliley bill through Congress in 1999. That legislation repealed the Glass-Steagall Act of 1933 and substantially revised securities industry regulation. While allowing banks full access to the sale of securities, it reaffirmed the McCarran-Ferguson Act as the sole law regulating insurance, explicitly reaffirming state oversight of insurance.

He also played a key role in shepherding the landmark 2002 Sarbanes-Oxley Act into law. The legislation makes clear that top officials of U.S. public companies are responsible for the accuracy of the financial information they provide to investors.

"What the law really does is enshrine the principles of honesty and accountability that I learned growing up in Ohio," Rep. Oxley said in announcing his retirement from the seat of his district in Akron, Ohio.

Reacting to Rep. Oxley's decision, Robert A. Rusbuldt, CEO of the Independent Insurance Agents & Brokers of America, lauded him as a "giant" for independent agents and brokers–and the financial services industry–due to his legislative and leadership abilities, among other qualities.

"Mike Oxley is a 'legislator's legislator,' which is the highest compliment you can give to a member of Congress," Mr. Rusbuldt said. "He is a leader in Congress because he possesses the rare combination of policy, legislative and political acumen to move legislation."

Joel Wood, senior vice president of government affairs for the Council of Insurance Agents and Brokers, said Mr. Oxley's decision "was not surprising, given that he would be stepping down as chairman, but is still a huge loss to Congress. I am not sure I have seen anyone as capable as chairman of any committee."

David Winston, senior vice president of federal affairs for the National Association of Mutual Insurance Companies, added: "Mike Oxley will retire with a very distinguished record of legislative achievement in financial services. We will be losing a friend and a dedicated legislator who has a deep understanding of the financial markets.

Dennis Kelly, a representative for the American Insurance Association, added that, "Congressional leadership recognized Chairman Oxley's expertise and talent in the insurance and securities areas when they named him the first chairman of the newly created Financial Services Committee in 2001."

He added that "Chairman Oxley's effective management of the committee will be one of his many legacies. He is a tested and proven leader who has navigated some dicey issues and produced bipartisan results. Chairman Oxley will be the model for the next chairman of the committee."

Ernie Csiszar, CEO of the Property Casualty Insurers Association of America, said that, "Chairman Oxley has been a leader on Capitol Hill for more than 20 years. Whether addressing regulatory reform, corporate accountability, accuracy and access to credit histories, or a financial safety net for terrorism losses, Chairman Oxley showed a true understanding of insurance issues and a desire to develop free-market solutions for both the industry and consumers."

"It has been a great privilege to work with Chairman Oxley for so many years. I wish him well on his retirement," Mr. Csiszar added.