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Pennsylvania Congressman Says 'No Choice' But to Regulate Insurance

Posted on 30 Apr 2009

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Congressman Paul Kanjorski (D-PA), who is on the House Financial Services Committee, in a speech at a North American Securities Administrators Association event April 28, said federal regulation of insurance "is going to happen."

As reported by the Dow Jones, Kanjorski said that he plans to push for federal regulations for insurance and hedge funds, yet disagreed with the speed of reform being spearheaded by President Barack Obama.

Kanjorski said his opinion is to "slow down a little bit and do it right" as "unintended consequences could be catastrophic," according to the report.

One of the first things on the agenda for his House committee, the congressman said, is a hearing on systemic risk regulation. Kanjorski said hedge funds, private equity funds and venture capitalist funds cannot “go totally uncontrolled” and “we cannot have derivatives where nobody knows what they are made up of, where they reside and what the exposures are,” Dow Jones reported.

Kanjorski added that new regulation for insurance companies is “going to happen” as “we have to have it happen; we don’t have a choice right now,” according to the report.

A timeline for change, Kanjorski noted, depends on bipartisan support for many proposals on the table as he thinks that support is necessary for a new regulatory structure to sustain itself and be effective, the report states.