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This article reports that the 2008 global economic meltdown has highlighted the differences between state and federal regulation. Particular focus is given on the capital position of New Jersey's state-chartered banks, along with the case of American International Group (AIG). Efforts to increase federal regulation of banks and insurance companies at the expense of strong and effective regulatory systems are opposed by the Conference of State Bank Supervisors and the National Association of Insurance Commissioners.

An interview with New Jersey Department of Banking & Insurance (NJDOBI) commissioner Steven M. Goldman is presented. He discusses the potential risks of a subprime market collapse for borrowers in the state. Goldman notes that the department is frequently cooperating with federal agencies and other states when there are issues that involve them. The commissioner also cites actions taken to better educate home-loan borrowers.