NU Online News Service, March 17, 4:07 P.m. EST
Treasury Secretary Tim Geithner just announced at this afternoon's FSOC meeting that Michael McRaith will be the first director of the Federal Insurance Office.
Mr. McRaith most recently served as Director of Illinois' Department of Insurance.
Earlier this month, NU Online News Service reported that Mr. McRaith was expected to be named to the post.
Shortly afterward, in an email sent to his staff at the Illinois department, Mr. McRaith called the media reports unconfirmed rumors. "If I were to leave the department, please know that you will hear that from me before you hear from the media or anyone else," he wrote.
The FIO post was created under the Dodd-Frank financial services reform law.
Mr. McRaith is currently secretary/treasurer of the National Association of Insurance Commissioners.
Under the law, the FIO will have no regulatory authority, but it will have the power to monitor all activities related to the business of insurance except for health insurance and long term care insurance.
A key role will be advising the Treasury secretary on the financial health of insurers, especially regarding whether an insurer poses a potential risk to the stability of the financial system and should be subject to federal as well as state oversight.
Under Dodd-Frank, the FIO will share negotiating authority on bilateral insurance trade agreements with the U.S. Trade Representative.
The FIO will also be required to consult with four congressional committees before the pacts are agreed to, and the Treasury Department may be required to defend such agreements in court under the final agreement.
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