Apr 052008
There’s a lot not to like about Henry Paulson’s plan for a federal powergrab for the financial services industry, but here’s one I hope people will be thinking about:
The proposals include calls for a federal insurance charter that would allow big insurers — which are currently regulated by the states — to more easily operate nationally.
In other words, this would let the bigger insurers squeeze out the smaller ones, creating monster corporations that will be too big to be allowed to fail, and which will therefore be eligible for federal bailouts.