Fed Chairman Favors Abbreviated TRIA Role

Federal Reserve Chairman Alan Greenspan on Thursday told members of Congress that the insurance industry needs some federal financial backing in case of terrorist attacks on U.S. soil, according to Reuters. Greenspan called parts of the Bush administration's proposal to shift more liability in TRIA to private insurers "very sensible." TRIA, which was enacted after the Sept. 11 attacks in 2001, expires next year. Congress is considering an extension and how much risk the federal government should assume in TRIA II. Source: Reuters...