Chris Dodd: “If we look at the accounting and start setting up separate accounts, then in a sense capital is being trapped, and I do…”

“If we look at the accounting and start setting up separate accounts, then in a sense capital is being trapped, and I do not think we want to do that. At least I do not want to do that; others may want to do it. That is one of the issues, solvency. As a former insurance commissioner, the Senator from Florida knows that no company can do business in his State unless they are solvent, unless they have in reserve adequate enough resources to respond to the claims that can occur from a natural disaster or other types of insurance that may be provided. So solvency is critically important. If we start segregating accounts, we get into the issue of capital adequacy. So I think I would be unwilling to require segregation of accounts. I think if we have an accounting of them, we would achieve the same result.”