FDIC Could Become Federal Insurance Regulator

Reuters reports that The Federal Deposit Insurance Corp.’s powers could be expanded if Congress decides to shift insurance companies from state regulation to federal regulation. States currently regulate insurance companies. However, according to FDIC Chairman Sheila Bair, the FDIC could start providing guarantees for insurance companies, much like it already guarantees the deposits of most U.S. banks, if the insurance industry comes under federal regulation.