Stuart Varney falsely claimed that the insurance industry and credit-rating agencies are "not part at all of this new financial regulation bill -- not part of it at all." In fact, the bill would establish new regulatory structures to oversee the insurance industry and credit-rating agencies.
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Varney falsely claims "this new financial regulation bill" does not address insurance, credit-rating agencies "at all"
Varney: Rating agencies and insurance "are not part at all of this new financial regulation bill -- not part of it at all." After warning that "you never know what form the next crisis is going to take," Varney said on the July 13 edition of Fox News' America's Newsroom:
And by the way, Fannie, Freddie, the housing industry generally, plus insurance, plus the rating agencies, they are not part at all of this new financial regulation bill -- not part of it at all.
"This new financial regulation bill" establishes Office of Credit Ratings
Legislation creates Office of Credit Ratings. On June 30, the House passed the conference report to the Wall Street Reform and Consumer Protection Act. That legislation would establish an Office of Credit Ratings within the Securities and Exchange Commission, which would "promote accuracy in credit ratings issued by nationally recognized statistical rating organizations" and "ensure that such ratings are not unduly influenced by conflicts of interest."
NY Times: Legislation "widens the purview of the Securities and Exchange Commission to broaden regulation of hedge funds and credit rating agencies." A June 30 New York Times article reported, "The legislation also vastly expands the regulatory powers of the Federal Reserve and establishes a systemic risk council of high-ranking officials, led by the Treasury secretary, to detect potential threats to the overall financial system. It creates a powerful new consumer financial protection bureau and widens the purview of the Securities and Exchange Commission to broaden regulation of hedge funds and credit rating agencies."
WSJ: Legislation will "create a new office for oversight of credit-rating firms." A July 12 Wall Street Journal article reported, "[T]he law will also expand the SEC's enforcement powers, create a new office for oversight of credit-rating firms and give the agency more say in its budget. The SEC staff will also have to conduct multiple studies, hire hundreds of new employees, and set aside time to respond to the Government Accountability Office, a government watchdog that has been charged with reviewing the agency and the markets that fall under its purview to determine if efficiency can be improved."
USA Today: Legislation would authorize SEC to inspect, fine, and deregister ratings agencies. A June 25 USA Today article reported that under the legislation, "The Securities and Exchange Commission would inspect the biggest [credit-rating] agencies annually and report its findings publicly. The SEC could fine agencies for failing to comply with financial regulations and deregister agencies that pile up a bad record over time. And agencies would have to disclose how they assign ratings and abide by more conflict-of-interest rules."
"This new financial regulation bill" establishes Federal Insurance Office
Legislation creates Federal Insurance Office. The bill also would establish a Federal Insurance Office "within the Department of the Treasury" that will "monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the United States financial system."
LA Times: Legislation would "give regulators new powers" over financial firms, "including large hedge funds and insurers A June 26 Los Angeles Times article reported that the legislation would "give regulators new powers to oversee lightly regulated financial firms, including large hedge funds and insurers." The article further reported that "the legislation provides for a council of regulators that would have the ability to wind down financial institutions that end up in trouble and that are deemed 'systemically significant' -- such as insurance companies."