WASHINGTON - The administration plans to send Congress on Monday new draft legislation that would give the government authority to dismantle large financial companies that get into crises, U.S. Representative Barney Frank said on Friday.
The new draft bill is expected to take a tougher stance toward troubled financial firms, and may take out some language that would allow for temporary bailouts. Giving the government so-called resolution authority would serve as a rebuttal to the concept that some firms are too big to fail.
Frank, chairman of the House Financial Services Committee and a chief architect of the financial regulation overhaul, said Congress is discussing whether to create an optional federal charter for insurers.
Insurance companies are currently regulated by the states.
If we do get into national chartering it will be in life insurance ... and maybe large commercial entities, Frank said during remarks to a banking symposium.
He said lawmakers would not likely try to federally regulate property and casualty insurers, however.
(Reporting by Karey Wutkowski, editing by Gerald E. McCormick)