The 142-year-old war between the forces of state and federal insurance charters flared up again in February. The February 10 edition of Roll Call, the Capitol Hill newspaper, ran a guest column by US Rep. Paul Kanjorski (D-PA) in which he blamed the failure of bond insurers on state regulators. In response, the National Association of Insurance Commissioners (NAIC) EVP Cathy Weatherford released a statement which charged that the blame rested with federal officials. When the subprime mortgage bubble burst, several bond insurers faced downgrades in their financial ratings. The downgrades introduced volatility into financial markets with a heavy bias toward selling. To defend the tarnished and tired reputation of state insurance regulators, the NAIC issued a statement over the rubber-stamped signature of EVP Catherine J. Weatherford.
Pages to are hidden for
"HE SAID, SHE SAID"Please download to view full document