Washington Waits For Treasury To Review TRIA

Insurance industry officials have been battling for a year to have the current 3-year plus program extended for 2 years while a more permanent solution with lesser federal involvement is crafted.

These people say that if the report recommends a straightforward 2-year extension as proposed in a bill introduced several months ago by Sens. Robert Bennett, R-Utah, and Christopher Dodd, D-Conn., it will set off immediate action in the House, probably leading to hearings by mid-July in the House Financial Services Committee, as well as the introduction of legislation there by the time Congress leaves for its annual August recess.

An equally positive result will occur if the report recommends a 1-year extension while providing "contours" as to what the administration will accept as a long-term solution. "Anything that is nebulous is beneficial, setting off immediate action, at least in the House," one lobbyist says. "Any combination of the above options is acceptable."

If the report makes no recommendations as to what is acceptable to the administration, "there will be no extension," the lobbyist says.