vol. XXI no. 2 Page 1 2 3 Bearing Witness Martin Grace, professor of risk management and insurance, traveled to Washington twice recently to testify at Congressional hearings on federal regulation of the insurance industry. Grace was a witness at a May 14 hearing of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises. Grace told Best’s Insurance News that “most regulation is reactive and not proactive,” adding that “what we need is a regulatory system that looks forward.” Grace returned to Capitol Hill on July 28 for a hearing of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. In its coverage of the hearing, Business Insurance quoted Grace as testifying that the idea of establishing an Office of National Insurance “is a good first step. Let’s see how it goes.” Dow Jones Newswire also ran a story on Grace’s testimony. Ripple Effect With the California economy in shambles, Business- Week asked Economic Forecasting Center Director Rajeev Dhawan about the impact on other states. “The (economic) connection is not that strong unless you are talking about neighboring states with a trade connection like Nevada or Arizona,” said Dhawan, who noted that Las Vegas would suffer if Angelenos made fewer trips to the city. He concluded that “the further from California the state is, the less likely it is to be effected." Agarwal: "Why Should Taxpayers Pay for Hedge Fund Failures" Associate professor Vikas Agawal asked the above question when interviewed by MarketWatch. Agarwal argued that already disgruntled taxpayers and legislators surely would take issue with a government bailout of a major hedge fund. Continued on next page Top | Next Page

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