House approves Tria extension

House approves Tria extension

The US House of Representatives has passed a bill extending the Terrorism Risk Insurance Act (Tria) for six years.

The bill passed in an overwhelming bi-partisan vote - with 417 votes supporting the proposal to just seven against.

The House voted at around 4:30pm on Wednesday on an amended version of the Senate’s bill, S. 2244, which extends the programme for six years.

The bill also raises the loss trigger to $200m, a sharp decline from the $500m originally proposed by House Financial Services Committee chairman, Rep. Jeb Hensarling (R-TX).

The final piece of legislation is in line with the compromise deal between Hensarling and Democratic Senator Charles “Chuck” Schumer (D-NY), which Reactions was made aware of last week.

However, the bill also contains provisions to modify the Dodd-Frank Act by incorporating a rule which will relieve insurers of capital standards regulations that originally targeted banks.

Hensarling has also sought to inject an “end-users” provision into the legislation. This would change the law so that non-financial institutions do not have to follow some of the same restrictive financial regulations as large financial institutions, such as investment banks.

Democrats have balked at these proposals and it threatens the bill’s passage through the Senate, with Democratic Leadership in the chamber opposed to any such sweeping changes to Dodd Frank.

The White House also had its say on Wednesday. 

While it supported Tria, the administration said it was “strongly opposed” to the changes to Dodd-Frank being sought by Republicans.

However, most importantly President Obama's administration did not threaten a veto.

The industry will have an answer to Tria extension, whatever the result, on Thursday, December 11.

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