Regulation/Legislation

Federal Reserve Board Chairman Ben Bernanke defended his agency's actions in bailing out American International Group and asked the Government Accountability Office to conduct a study of its decisions involving AIG.

Controversial compensation disclosure rules proposed by the New York State Insurance Department could still spark a lawsuit if that agency fails to make changes, an agent group said.

Congressional negotiators on a health care measure have indicated that they hope to present a compromise bill sometime this week to the Congressional Budget Office for a final evaluation of its costs.

Sen. Charles Grassley, R-Iowa, ranking minority member of the Senate Finance Committee, has asked officials to detail how an American International Group executive who resigned is entitled to a multimillion-dollar severance agreement.

Treasury Secretary Timothy Geithner has been scheduled to testify before a House committee concerning controversial dealings between the Federal Reserve Bank of New York and American International Insurance.

A new Scottish court decision means insurers with exposure in the United Kingdom Scottish market face potentially elevated asbestos claims costs, which is a credit negative, Moody's Investors Service said.