Fed preemption powers limited in House, Senate fin. svcs agreement

The Treasury Department's authority to preempt inconsistent state laws when concluding bilateral insurance trade agreements with foreign countries will be considerably watered down in final financial services reform legislation. House and Senate negotiators Wednesday approved final language on Title V of H.R. 4173 , which contains the bill's insurance provisions. The Senate and House negotiations resulted in the creation of a Federal Insurance Office (FIO) that will be housed within the Treasury Department.