WASHINGTON - Regulators and investor advocates voiced support yesterday for a proposal that addresses consumer protection and would bring investment funds under government supervision as part of Congress’ efforts to revamp the US financial rule book.
Republicans objected to key elements of the plan and said the Democrats crammed too many complex topics into one sparsely attended hearing of the House Financial Services Committee.
The draft legislation by Representative Paul Kanjorski, Democrat from Pennsylvania, also would give the federal government some oversight of the insurance industry now regulated by the states. It calls for creation of a federal insurance office within the Treasury Department to monitor the industry and watch for potential risks.
Insurance industry players, represented at yesterday’s hearing, were split over the proposal.
Kanjorski’s broader plan closely tracks the Obama administration’s proposals for investor protection and bringing hedge funds and other private pools of capital under government supervision.
House Majority Leader Steny Hoyer, Democrat of Maryland, said the entire package of changes designed to prevent another financial meltdown could be put to a House vote next month. But Kanjorski told reporters …
Read the original article at Boston
