Minnesota Insurance

Last week, the Bush administration has requested a bad dose of medicine: the creation of new federal agencies to reduce the one hand, the capacity of national governments to protect their citizens.

What is missing, the federal government is not, however, the absence of the regulatory authority, but the lack of willingness to use them.

Over the past 50 years, deregulation at the Confederation has no doubt improved efficiency in certain areas. But federal law is sick of the indifference of public opinion, has served in many others: the Food and Drug Administration’s aversion to drug surveillance, reservations, the Department of Justice for implementation of the antitrust legislation, the Department of Labor reluctance to regulate federal governed health plans, the Federal Communication Commission reluctance race to the concentration in the media, and the Environmental Protection Agency’s Address not invasive species in the Great Lakes region or carbon, mercury emissions and ozone. The list goes on. This week, it was the FAA and safety of airlines. With this kind of record performance in Washington now is not the time for the state government to lose consumer protection to the safety of the federal police.

The Bush administration proposes a new Federal Mortgage Origination. There are gaps in the states’ regulation of the mortgage copyrights, to be sure. But why should we believe that the new federal commission is better than the SEC or OCC? These agencies have already substantial financial authority, fraud, fraud, including in the secondary mortgage market. But they are not willing to use them.

The administration also wants assurances are not regulated by the federal government. This would not only strengthen the capacity of states to protect policyholders against unfair practices of the insurance, they would undoubtedly insurance in countries such as Minnesota. Midwestern states often have fewer and property insurance rates accident, because they do not possess the same risks - hurricanes, the buildings obsolete application code, brandies urban, etc. - reaching what higher prices on both coasts and in the southern -. A federal decree regulated insurance would probably be shining on the geographical differences, which Minnesota’s insurance premiums.

The government showed that it was more relevant to the needs of citizens. For example, during the year 2006, while States were prosecuted Ameriquest Mortgage for $ 325 million of the predatory practices of credit business, the White House has been used for the appointment of CEO ‘ Business, Ambassador of the Netherlands.

First, it was for the presidency, George W. Bush said he favoured “state’s rights”, and a small federal government. But now wants to extend his administration, the federal government at the expense of the “rule of law” to protect citizens. What are the effects of this change in policy? Could it be that, when it comes to consumer protection, the management of white, which has the real power in Washington?

As President Franklin D. Roosevelt, there were about a dozen lobbyists in Washington, DC President Reagan in office, there were fewer than 1000 lobbyists. Today, there are more than 36,000. Advise time, the number of consumers represent normal? Not much. A study shows that since 1999, the mortgage industry for over $ 200 million lobbying elected officials. Ratet evil, as many homeowners issued ordinary? Not much. And now we have a mortgage merger that has spread to virtually every aspect of the economy.

The proposals by the federal government are a displaced seize power with a hidden agenda anticonsumer. They should be about as much attention as the administration has paid the price of consumer protection in the past eight years.

Lori Swanson, the Attorney General of Minnesota.