Sen. Dodd Says He Will Stay On As Bank Committee Chair

NU Online News Service, Sept. 9, 3:47 p.m. EDT

WASHINGTON–Sen. Chris Dodd, D-Conn., said he will not take the chairmanship of the Senate Health, Education, Labor and Pension Committee left vacant by the death of Sen. Edward Kennedy, D-Mass., and will remain as Senate Banking Committee chairman.

He issued a statement this afternoon, following the weekly Senate Democratic luncheon, in which he said, "I will continue to lead the fight in the Senate for financial regulatory reform and consumer protection."

Congressional sources said the decision by Sen. Dodd likely clears the way for Sen. Tom Harkin, D-Iowa, current chairman of the Senate Agriculture Committee, to take the spot Sen. Kennedy held.

That would clear the way for Sen. Blanche Lincoln, D-Ark., to head the Agriculture Committee.

The Banking panel has yet to complete work on any of a myriad of issues stemming from the current financial crisis, including possible greater federal involvement in regulation of the insurance industry, as well as executive compensation issues, consumer protection, systemic regulation and broadening federal regulators' authority to deal with large troubled non-bank financial companies, including insurers.

The Obama administration has sent to Capitol Hill several pieces of legislation broadening federal authority to regulate insurers, including legislation creating an Office of National Insurance and establishing the Federal Reserve Board as a systemic regulator.

Leigh Ann Pusey, president and chief executive officer of the American Insurance Association, said Sen. Dodd's decision is "encouraging."

She said that under his leadership, the banking panel has "undertaken a comprehensive look at regulatory modernization and we believe an effective case has been made for a market-based federal charter for insurance.

She also noted that both Sen. Dodd and his staff "have a strong working knowledge of the issues and challenges facing our industry and this choice demonstrates his commitment to delivering meaningful reform."