Richard Shelby

If an insurance company is involved in derivatives on the national, international scale, how could States regulate them?

Over the past 2 years, we have seen how problems in our insurance markets can disrupt our national economy.

The spectacular failure of AIG sent shockwaves throughout our economy, and led to a $170 billion bailout by the Federal Government.

But aren't a lot of the problems that we have encountered that insurance, and, of course, banks, too, are involved in things without adequate capital to back up what they are involved in, the risk that they take?

Shouldn't that be an appropriate study somewhere?

These events revealed that comprehensive insurance regulation must be a part of our reform effort.

Quickly, is the Fed really the appropriate agency to regulate insurance companies, because they have no history there.

I believe we are grappling here in the Banking Committee with maybe the most challenging, complex piece of legislation or proposed legislation that we have ever had.

These events reveal that comprehensive insurance regulation must be a part of our reform effort.

It would put a lot of power in bureaucrats, would it not?

I believe that expanding the Fed's power in this manner could be very dangerous.

If market participants believe that they no longer have to closely monitor risks presented by financial institutions, the stage will be set for our next economic crisis.

No, if we created something like they proposed, which I hope we won't, it would put a lot of power in the bureaucrats.

I believe that it would be legislative malfeasance to simply tell a particular regulator to manage all financial risk without having reached some consensus on what systemic risk is.

I believe that expanding the Fed's powers in this manner could be very dangerous.

I don't believe it is possible in the American system of Government, nor do I think it should be possible in the American system of Government for people to say the Congress doesn't have a right even to make the mistakes that it makes.

I believe our next question should be: Who should regulate it?

I do not know why you would need it.

Credit unions, as I understand them, are by design set up to serve the needs of their members.

I think it is a long way from being and coming into existence. I hope.

I believe she is highly qualified, and I would think that the sooner the Senate got through the hearing and confirmed her to the credit union, somebody would be in control over there.

By overcounting here, undercounting there, [census] manipulation could take place for sole political gain.

Unfortunately, this program has only modified a handful of mortgages.

Today, the Committee will examine the state of our housing market and the Federal Government's efforts to prevent foreclosures in the midst of what is now the most severe recession in a generation.

In many ways, I believe that this hearing could begin to put the horse back in front of the cart by undertaking some of the investigative work necessary to properly address the issues surrounding the housing market in this country.