Congress mulls insurance regulator

Officials suggested in a hearing before the House Financial Services Committee that Congress explore creating a federal insurance regulator for bonds, because of turmoil in the credit industry that has spread to the rest of the economy. The regulator could be modeled after the Federal Deposit Insurance Corp., said Rep. Paul Kanjorsski, D-Pa., and chairman of the subcommittee on capital markets chairman. The regulator should be considered, but states still have a role to play in overseeing the industry, said New York Gov. Eliot Spitzer during the hearing.