Sen. Shelby says terror insurance deal close

WASHINGTON (Reuters) – The chairman of the U.S. Senate
Banking Committee on Friday said a deal was close on a bill to
extend government guarantees to cover losses from terrorism.

Alabama Republican Sen. Richard Shelby, holding up a thumb
and forefinger close together, said: “We’re that close.”

He also expressed hope that a deal would be struck Friday.

“It’s basically the Senate bill,” he told Reuters, when
asked for details.

The House and Senate have passed separate and distinct
bills to extend the Terrorism Risk Insurance Act (TRIA),
enacted after the September 11, 2001, attacks on the United
States to create a temporary federal program of shared
compensation for losses from terrorist events.

TRIA is set to expire December 31 if not extended.

Sources close to the discussions said few issues remained
in the negotiations, but that included a proposal requiring
mandatory payback of federal assistance to insurers.