WASHINGTON, D.C. (PRWEB) December 02, 2016
Wes McClelland, Vice President for Federal Affairs for the American Insurance Association (AIA), issued the following statement after the House of Representatives’ passage of H.R. 6392, the Systemic Risk Designation Act of 2016. Sponsored by Rep. Blaine Luetkemeyer (R-MO), the bill removes an arbitrary size threshold and, instead, bases a final determination of an institution's risk on the criteria set out in Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
H.R. 6392 passed the House of Representatives last night by a vote of 254 to 161. Mr. McClelland’s statement follows:
“Given the strengths of the insurance business model, it is clear that the property-casualty industry was not and is not a source of systemic risk to the financial system. Therefore, in testing for enhanced supervision of financial institutions, the bill appropriately recognizes that risk assessment should be based on a range of factors wider than just size. We are pleased to see the passage of H.R. 6392 and applaud Mr. Luetkemeyer’s leadership on this issue.”