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Twenty years ago, it was easy to classify companies such as Ryder/P-I-E, Consolidated Freightways and Yellow Freight System as less-than-truckload carriers: simply put, that was the type of freight they [...]

The insurance industry will lobby for Congressional action on important issues such as financial services deregulation, Superfund reform and product liability legislation. While insurers are aware that there are other important issues Congress needs to address, some believe that the current scandal besetting Pres Clinton will have an effect on the swift passage of legislative bills for political reasons. Managed care regulation is expected to be one of those concerns that will be given increased attention by the Clinton administration.

Negotiations at the World Trade Organization (WTO) concerning the liberalization of financial services such as banking, insurance, and securities have remained at a stalemate. Participating developing countries failed to reach any agreements due to apprehension over monetary instability. The formulation of a global WTO council that would handle financial services and effectively address questions about trade laws is the logical solution. The regulatory council would serve as the foundation for the prospective financial service industries of developing countries.

The opening of the financial sector remains a significant concern for the members of the Association of Southeast Asian Nations, as they fear for the local small companies inability to compete with multinational firms. Thailand, particularly, declined to comply with World Trade Organization's request to submit in July 14, 1997, an improved version of its financial sector liberalization plan. Asian nations are divided regarding the scope and pace of liberalizing their respective financial sectors, with Hong Kong and Singapore pushing for speedier removal of trade barriers.

Japanese Prime Minister Ryutaro Hashimoto's economic reform policies include a planned internationalization of the Tokyo financial market modeled after the New York and London markets. The planned deregulation, otherwise known as the Big Bang, is feared by industry insiders to result in the Tokyo market's domination by foreigners.

A General Accounting Office (GAO) report released in Mar 1997 supports Iowan Representative James Leach's opposition to changes in the separation of commerce and banking. The GAO report claims that full deregulation in the financial services industry exposes the financial system, the deposit insurance funds and the consumers and taxpayers to risks.

House Banking Committee Chmn. Rep. James Leach is expected to relaunch his bill which would allow banks into the insurance business despite a recent Supreme Court ruling that upheld bank insurance sales in small towns under the National Bank Act. Leach is believed to be pushing for the legislation to rationalize the system more uniformly and in his bid to repeal the Glass-Steagall Act. Leach also feels that the law will set the future guidelines for the financial services industry.

The Thai government remains committed to reforms in the country's banking, insurance and financial markets despite some reservations. Foreign observers stated that the Thais have adopted a cautious attitude, thus slowing down the pace of deregulation and liberalization. However, they also stress that the government appears to be moving forward with its reform efforts and that there have been no indications so far of any reversal of policy.

The Thai government has allowed Thai finance firms to trade in the foreign exchange market as part of its efforts to promote reform and liberalization. Finance Minister Tarrin Nimmanahaeminda noted that liberalization will enhance competition and increase foreign currency transactions. There are 14 finance companies with the $81.6 million required for a foreign exchange trading license.