Richard Shelby

  • Richard Shelby (R-AL)
  • 1986-1994 – US Senator (Democrat)
  • 1994-2023 – US Senator (Republican)
    • 2015 1014 – Shelby Delivers Speech on “The Trouble with Dodd-Frank” at Harvard Law School – [link]
  • AIG – 2008 Financial Crisis
  • Dodd-Frank
  • Military – Life Insurance
  • p21 – Chairman Richard Shelby (R-AL) – I personally believe that companies that are doing business this way, as you describe, exploiting our soldiers, should be banned or something. You know, I do not know exactly how we are going to do it, but we are going to look seriously, Senator Sarbanes and I working with Senator Enzi and others, Senator Allard, on legislation. 

2005 1117 – GOV (Senate) – A Review Of The GAO Report On The Sale Of Financial Products To Military Personnel, Richard Shelby (R-AL) —  [BonkNote] 

  • 2010 0813 – Letter – Senator Richard Shelby (R-AL) to Senator Chris Dodd (D-CT) – 1p
    • Recent press reports have raised concerns….
    • Because the regulation of insurance falls under the Banking Committee’s jurisdiction, it is the Committee’s obligation to ensure that insurance regulation adequately protects our service members and their families.
    • Accordingly, I believe that the Banking Committee should hold a hearing to examine these reports and determine if any unfair practices exist.
    • I have already instructed my staff to begin investigating this issue in preparation for a hearing.
  • (p27) – Senator Richard SHELBY. What does ”relatively” mean?
  • Mr. MCRAITH. Well, that means–
  • Senator SHELBY. You say they are in ”relatively” good shape.
  • Mr. MCRAITH. First of all, I would never say publicly whether any one company were in trouble, but at the same time, I am not going to mislead you, Senator.
    • The companies that we are regulating, we are comfortable with their financial status.

2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT)  —  [BonkNote]

  • (p29) – Senator Richard SHELBY (R-AL).-  Mr. Hunter, do you agree with his statement ?
    • [Bonk: his = Michael McRaith (NAIC / Illinois Insurance Commissioner]
    • What is your take on it.
  •  J. Robert HUNTER (CFA). – I didn’t hear him answer the question.
  • Chairman DODD. He did–
  • Mr. HUNTER. I don’t think it could handle-I don’t think the guaranty funds could handle it, no.
  • Senator SHELBY. Couldn’t handle it–
  • Mr. HUNTER. That was your question, and I don’t think they–
  • Senator SHELBY. It would be too big for them to handle, would it not?
  • Mr. HUNTER. Of course. Yes.
  • Senator SHELBY. I thought so, too. Thank you.

2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT)  —  [BonkNote]

  • 2015 0325 – GOV (Senate) – FSOC Accountability Nonbank Designations, Richard Shelby (R-AL)
    • [PDF-165p,  VIDEO-CSPAN – <Bad Link>
    • (p34) – Chairman SHELBY. Mr. Hughes, insurance products-you know this well-especially long-term insurance contracts such as life insurance, face a much different probability for runs and, thus, failure than one would typically fear with banks.
      • We have heard concerns that FSOC’s designation process treats these insurance contracts similar to bank assets, but they are different.
      • Would you discuss the likelihood of a so-called run on insurance products such as life insurance and what such a run would have to look like in order to cause systemic risk? 
  • As a liability-driven business, insurance often has long-term cash-flow patterns compared to shorter-term activities at banks.
  • Consequently, current law fails, I believe, to adequately account for the business model and risk profile of insurance companies, and that should concern us all.  (p1)

—  Richard Shelby (R-AL) 

The State of the Insurance Industry and Insurance Regulation, Richard Shelby (R-AL)  — [BonkNote]

  • 1987 0128 – GOV (Senate) – Corporate Takeovers
    • [PDF-?, VIDEO-CSPAN]
    • 13:50-15:00 – Richard Shelby: Ramifications of Hostile Takeovers, Monopoly References,  Go To Jail Card, Are Hostile Takeovers Criminal or simply Capitalistic in nature?
    • 15:00- – Metzenbaum –  
    • Senate – Banking, Housing, and Urban Affairs Committee
  • AIG’s problems, however, were not isolated to its credit default swap business.
    • Significant losses in AIG’s State-regulated life insurance companies also contributed to the company’s collapse.
    • Approximately a dozen of AIG’s life insurance subsidiaries operated a securities lending program whereby they loaned out securities for short periods in exchange for cash collateral.
  • Typically, an insurance company or bank will lend securities and reinvest the cash collateral in very safe short-term instruments.
    • AIG’s insurance companies, however, invested their collateral in riskier long-term mortgage-backed securities.
    • And although they were highly rated at the time, approximately half of them were backed by subprime and Alternate-A mortgage loans.
  • Because AIG was unable to cover its obligations to both its securities lending and derivatives operations, it ultimately had to seek Federal assistance.
  • In total, AIG’s life insurance companies suffered approximately $21 billion in losses related to securities lending in 2008.
  • (p4) – Significant losses in AIG’s State-regulated life insurance companies also contributed to the company’s collapse.  
  • (p5) – More than $17 billion in Federal assistance has been used to recapitalize the State-regulated insurance companies to ensure that they are able to pay their policy holders’ claims. 

—  Statement of Senator Richard C. Shelby (R-AL)

2009 0305 – GOV (Senate) – American International Group: Examining What Went Wrong, Government Intervention, And Implications for Future Regulation, (CSPAN) Government Intervention and Regulation of AIG, Chris Dodd (D-CT)   —   [BonkNote]