WASHINGTON The House unanimously approved a measure Wednesday night clarifying the Federal Reserve Board's ability to tailor capital standards for systemically important insurers.
The fix tweaks language to the so-called Collins amendment of the Dodd-Frank Act, based in part on a request by the Fed, so that it could move forward with pending regulations. The bill sailed through the Senate this summer, and lawmakers in the House passed a similar bill earlier this fall, but that legislation included several other changes to Dodd-Frank.
The House has now approved a clean version of the Senate legislation, and the bill will proceed to President Obama's desk to be signed into law.
"This commonsense fix ensures that traditional life, property, and casualty insurance are not held to the same capital standards as banks," said Sen. Sherrod Brown, D-Ohio, in a press release. "While strong capital standards are crucial, they must make sense. Applying bank standards to insurers could make the financial system riskier, not safer."
Brown sponsored the legislation with Republican Sens. Susan Collins of Maine and Mike Johanns of Nebraska.