Prof. Schwarcz Testifies to Congress on Bill to Reform Federal Role in Insurance Regulation

Professor Daniel Schwarcz testified to a subcommittee of the United States House Financial Services Committee regarding a Bill that would exempt a new category of savings and loan holding companies—those with a focus on insurance—from federal supervision. Professor Schwarcz testified that the Bill violates the core principle that owners of federally-insured banks must be subject to effective consolidated oversight at the federal level and creates the prospect for the same type of regulatory arbitrage that helped cause the 2008 financial crisis. This was Professor Schwarcz’s seventh time testifying to Congress in the last seven years.