WASHINGTON — Regulators and investor advocates voiced support Tuesday for a proposal that addresses consumer protection and would bring investment funds under government supervision as part of Congress’ efforts to revamp the U.S. financial rule book.
Republicans objected to key elements of the plan and said Democrats crammed too many complex topics into one sparsely attended hearing of the House Financial Services Committee.
The draft legislation by Rep. Paul Kanjorski, D-Pa., also would give the federal government some oversight of the insurance industry, which is now regulated by the states. It calls for creation of a federal insurance office within the Treasury Department to monitor the industry and watch for risks.
Insurance-industry players, represented at Tuesday’s hearing, were divided.
Kanjorski’s broader plan closely tracks the Obama administration’s proposals for investor protection and bringing hedge funds and other private pools of capital under government supervision.
