New Senate Leader Reid Backs Asbestos Talks

Washington, DC, November 17--Negotiations on a national fund to compensate asbestos victims will continue, the Democrats' new leader in the U.S. Senate, Harry Reid, said on Tuesday. "I will continue to negotiate," Reid of Nevada told a news conference after his election by other Democrats in the Senate. "I think it's something we need to do." Reid's predecessor as minority leader, Sen. Tom Daschle of South Dakota, and Senate Majority Leader Bill Frist, a Tennessee Republican, swapped proposals for an asbestos compensation fund for months. They agreed on $140 billion as the overall size of the privately financed fund, but remained at odds on many details. Insurers and industry are weighing whether they believe a trust fund for U.S. asbestos victims that would replace lawsuits can work, or whether they favor another legislative approach once a new, more Republican Congress convenes next year. Asbestos was widely used for fireproofing and insulation until the 1970s. Scientists say inhaled fibers are linked to cancer and other diseases. U.S. companies have paid out tens of billions of dollars on hundreds of thousands of asbestos injury claims. Dozens of affected companies, like Armstrong World Industries, Congoleum, W.R. Grace and Co. and Federal-Mogul Corp have filed for bankruptcy protection.