He particularly cited in his talk the lack of work in the Senate on creating a program that would ultimately replace TRIA by allowing insurers to build up contingent reserves in such a fashion so that not only would there be funds to cover another terrorist attack, but money left to deal with another event.

Mr. Gordon said “it is clear” from hearings held on the subject last week that “the House will act on a comprehensive bill early next year, regardless of who is chairman.”

However, Mr. Gordon noted, “that's the House. What's the sound of one hand clapping? The pattern of the last two go-arounds [on TRIA legislation] will repeat itself because the Senate will wait until the very last second.”

“They are going to suggest letting it expire or extend some very small portion–the nuclear, biological, chemical or radiation component, workmen's compensation, or, some lines of coverage, it's unclear,” he added.

However, Mr. Gordon said, it is unlikely the Senate will go along with “creating a long-term solution that will create a viable private market and certainty in the marketplace.”

Mr. Gordon also used the phrase, “kick the can down the road” in criticizing the Senate's approach on TRIA–a comment his boss, Rep. Michael Oxley, R-Ohio, chairman of the committee, used on the House floor late last December in grudgingly asking the House to support the take-it-or-leave-it TRIA extension bill foisted on him by the Senate as Congress was working to complete its business.

Mr. Gordon was also critical of the report of the President's Working Group on Financial Markets on TRIA, which was released yesterday.

“It's a farce–a waste of everyone's time,” he said.

“We all knew what they would say in advance, the only question was how bluntly they would say it,” he added. “We all knew it wouldn't be too specific, but if you read between the lines, it says very clearly, 'We think the private market is working fine, we think TRIA is interfering with the market.”

“They don't want TRIA,” he concluded. “So, I commend the Treasury staff for doing a very professional and thorough job despite the obvious irrelevance of the report.”

In conclusion, he said, “both the House and Senate are all already well set on their trajectories. That is unlikely to change. The real crunch time will be at the end of next year.”