North Carolina Insurance

 Treasury Secretary Henry Paulson imperative to streamline financial regulation does not win praise from those comments Monday for a role for public authorities Superintendency of Banks and Insurance.

In the long term, Paulson’s “Blueprint” would give more power, the federal data banks, regulators, which has fought for many years with the regulatory authorities and public to stop their own standards of consumer protection. The plan also calls for a new Federal Charter Insurance, the branch of widely questioned by the various states.

In the short term, the proposal presented Monday focuses primarily on the transfer of skills federal agencies such as the Securities and Exchange Commission. But in the long run, he devotes deep inside the overlapping roles of the State and of the organs of the Confederation, that the monitor financial institutions.

On the front of the bank, in the model of long-term debt “after a federal regulator of behavior” that makes consumer protection. The plan would also review how the federal and state authorities to monitor a concession jointly banks. These are, in general, small community banks, in contrast to the major chartered national institutions such as Bank of America Corp. and Wachovia Corp.

NC Banking Commissioner Joe Smith said of the nation’s dual banking system and the federal authorities which led to a healthy competition and innovation. In particular, North Carolina, and other countries have led to a strengthening of consumer protection enact legislation, including mortgages at the Arena. “Why do you beat cops?” Smith said.

Admitting that he himself has an interest in the battle, Smith said he was concerned that the proposed Paulson is “technocratic” and “one-size-fits-all”. A large uniform of the national regulatory authority may regulatory burden on banks, small businesses and municipalities, he said.

In explanation Monday, Paulson said concerned that financial institutions can now shop for agencies, the lowest regimes. But Paul NC camps competition, “said Bankers Association believes that the regulatory authorities on the institutions to which they. He believes that the regulatory authorities honest, when there is an alternative, “he said.

On the insurance front, Paulson asked for a guarantee from the federal charter “for the promotion of a competitive industry in the United States and a new agency in the Department of Treasury for supervising these institutions. The insurance industry is largely regulated by states provokes complaints filed by insurance companies, which is composed of a patchwork of rules.

Chrissy Pearson, spokeswoman for the NC Department of Insurance, said the current system is necessary to ensure consumer protection. For example, North Carolina’s coastline insurance matters are quite different from those in other parts of the country, she said.

“We are talking about the balance, which is best suited to ensuring the protection of consumers,” said Pearson. “It is easier to be a balance at the local level.”

Some industry groups, but applauded the idea of a federally chartered insurance, including the American Bankers Association, gifts maintaining a double legal system banks. “The establishment of a national charter insurance option would enhance the benefits for consumers, increasing the overall competitiveness of American industry, insurance and greater consistency and effectiveness of the regulations , “the trade group, said in a statement.

One thing on which all agree is that on Monday, that the revelation of Paulson’s plan was only the first step in a long process. “I am not on a boat abandoned,” said Smith.