Originally Posted by Villages Kahuna

The system of state regulation, or no regulation, of the insurance industry got us in the fix we're in now. I don't think President Obama is trying to disguise his proposal to regulate insurance companies with a federal approach. It certainly deviates from the beliefs of those that believe in strong state's rights and a weak central government. But the results of the past couple of years have proven that the states didn't do a very good job of regualting insurance companies and assuring their financial stability. Then, of course, there's the problem of the AIG subsidiary which created a huge part of the current financial mess by purposely choosing to operate out of Great Britain, where they wouldn't be subject to any regulation at all.

As the financial industry has become far more multinational, does it seem reasonable that one or more of our individual states should attempt to regulate these businesses? States which have widely different levels of skill devoted to the job, and similarly inconsistent regulations. The change in the industry has created a recipe for continued disaster unless some strong, central player assumes the regulatory function.

I don't think there's any hidden agenda here at all. Just a recognition of what needs to be done in a 21st century financial industry.