WASHINGTON – A prefunded systemic risk resolution fund would damage economic recovery by reducing the capital available to financial firms that are already short of capital as a result of the financial crisis, according to insurance industry critics of the biggest legislative shake-up of America’s financial regulation since the Great Depression.

A greater decoupling of bank regulation from US financial reporting requirements is needed to maintain public trust and confidence in capital markets, according to the head of America’s accounting standard-setting body.

In case people have forgotten, the US is still going ahead with Basel II, and recent remarks aren’t changing the schedule

Capital requirements aren’t enough to save a banking system in trouble – they could even give false hope

Insurers worldwide are feeling victimised as regulators prepare to tackle systemic risk without apparently understanding the insurance business, writes David Keefe

Insurers can be systemically important because of “their size, their interconnectedness and the economic function of insurance,” European Central Bank president Jean-Claude Trichet said in November.

Should insurance supervision take account of financial stability as well as policyholder safety? Supervisors want an answer

America’s state insurance regulators agreed in December to an accounting change that means insurers will able to account more of their so-called deferred-tax assets as part of their capital cushions.

Big changes in bank capital and liquidity regulations given the ‘go ahead.’ Two consultation papers to be issued. Impact study due next year By Melvyn Westlake

US House of Representatives approves rules that are tougher than the Administration’s proposals. Industry and regulators will resist. By Nick Paraskeva