Florida's Hurricane Catastrophe Fund denied aid from U.S. Treasury

[madfloridian]

This is pretty scary. Credit to Senator Bill Nelson for keeping on with this issue. Our state's Republican leaders seem unable to function enough to handle it.

To my mind, economically simplistic as it is...it looks like Florida is not considered too big to fail by our government.

Cat fund denied aid from U.S. Treasury

TALLAHASSEE - State officials have sustained a setback in efforts to shore up the state's Hurricane Catastrophe Fund, which is intended to back homeowners insurance companies in case of a major storm.

An aide to Sen. Bill Nelson confirmed Wednesday that U.S. Treasury officials have said they won't issue a line of credit backing up the Cat fund. Dan McLaughlin, Nelson's deputy chief of staff, said that's not the end of the line for possible federal help with the Cat fund.

"It was one avenue being explored - it's not good news, but it's not the end of the effort either," McLaughlin said.

McLaughlin said other options include asking the Treasury for a federal guarantee of private loans, or asking the Federal Reserve for a line of credit or loan guarantee. And, he noted, Nelson and other Florida Congress members still hope to establish a national catastrophe fund, which would back state funds including Florida's.