Agents seek stay of Fed ruling on banks. (South Dakota loophole allowing banks to sell insurance)

National Underwriter Property & Casualty-Risk & Benefits Management, March, 1989 by Brostoff, Steven

Agents Seek Stay Of Fed Ruling On Banks WASHINGTON--Insurance agents will suffer irreparable harm unless the South Dakota loophole allowing bank holding company subsidiaries to sell insurance in certain states is immediately closed, attorneys for an agents' coalition told a federal appeals court.

The agents asked the court to issue a stay which would prevent a Federal Reserve Board decision blasting open the South Dakota loophole from taking effect. If a stay is not granted, the agents said, they stand to lose business to bank holding companies. Moreover, there is no legal remedy allowing agents to recoup these losses because neither the Fed nor bank holding companies can be sued to recover lost business, the agents said in a petition to the Second...

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