A Federal Charter Option for Insurance Companies: Lessons from the Bank Experience
26 Pages Posted: 12 Oct 2002
Date Written: September 2002
Professor Broome discusses the interest following the enactment of the Gramm-Leach-Bliley Act in establishing a federal charter option for insurance companies. She summarizes previous efforts to obtain a federal insurance charter. The paper attempts to draw some lessons for the insurance industry from the bank experience with dual chartering. Professor Broome cautions that the dual banking system is not the product of a carefully crafted balancing of powers between state and federal regulators, but rather an historical accident, and suggests that creating a new federal bureaucracy to mimic this system would, at this juncture, be premature.
Keywords: Banking Law, Finance, State Chartering, Insurance
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