Daniel Tarullo

  • Tarullo, D. K. (2008): Banking on Basel: The Future of International Financial Regulation. Peterson Institute for International Economics Washington, DC, August.
  •  “Insurance Companies and the Role of the Federal Reserve,” Speech by Federal Reserve Governor Daniel K.
    Tarullo (May 20, 2016) -  https://www.federalreserve.gov/newsevents/speech/tarullo20160520a.htm.
  • 2014 0909 - GOV (Senate) - Wall Street Reform: Assessing and Enhancing the Financial Regulatory System, Financial Regulatory System (CSPAN)
    • [PDF-177p, VIDEO-CSPAN]
    • (p24) - Daniel Tarullo. So, Senator, I guess I would draw a distinction between the creation of capital standards for traditional or current insurance activities, on the one hand, and an assessment of systemic risk on the other.
    • My own reading of the FSOC process with respect to Prudential and AIG is that there is not a lot of concern about the core insurance activities of those companies.
    • The concerns were with respect to some nontraditional insurance activities where runnability is more of a concern, and also with respect to things that are not insurance activities of any sort. I think that is where the analysis would allow one to conclude there is systemic importance.
    • I personally do not think that the issue of whether there is systemic importance in traditional insurance activities has really been broached, and I am personally not sure we need to broach it. I mean, my pretty strong presumption would be that there is not.
    • Senate - Banking, Housing, and Urban Affairs
  • However, a second observation is that the liability side of the balance sheets of many large insurance companies look quite different from this traditional picture.
  • Many life insurers, for example, now offer wealth and retirement products with account values that can be withdrawn at the discretion of the policyholder, sometimes with little or no surrender penalty.
  • Although these products are generally considered medium to long-term liabilities, the option to surrender or withdraw funds creates the potential for increased claims that could strain the liquidity of the firm.  (p12)

2015 0928 - FRB - Capital Regulation Across Financial Intermediaries, Daniel K. Tarullo, Member Board of Governors of the Federal Reserve System - 17p