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    U.S. House to Vote on TRIA Extension

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    As the December 31st expiration of TRIA moves closer, House Majority Leader Kevin McCarthy (R-CA) announced yesterday that next week the House will vote on proposed legislation to ensure TRIA does not lapse at year’s end. The legislation is being negotiated by House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Senator Charles Schumer (D-NY). The current measure is a compromise between legislation passed by the Senate earlier this year, S. 2244, and a House bill that never received full consideration by the House, HR 4871. Although negotiations are ongoing, the compromise currently includes a six year extension of the program and would trigger government payouts to insurers after the industry sustains an aggregate loss of $200 million as the result of a terrorist attack. This $200 million trigger would be an increase from the current $100 million trigger. It is also still unknown whether any amendments to the Dodd-Frank Act will be included. The House and the Senate disagree over what modifications, if any, to include. The Senate and House both want language that will shield large insurance companies from capital requirements similar to those imposed on banks. Additionally, the House wants to include provisions that shield non-financial companies or end users from derivatives regulation. Senate Democrats are resisting the additional amendments urged by the House. With Congress expected to go out of session for the year next week, the hope is that the compromise legislation can pass both the House and Senate before the end of the week.

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