E. Greenberg: Insurers Don’t Need Subsidies [OPINION] ·
Evan Greenberg, CEO of ACE Limited and chairman of the American Insurance Association, protests that U.S. insurers should not have to partake in the U.S. Treasury's Capital Purchase Program because they have yet to show they pose a systemic risk to the financial system. (WSJ)
October 31, 2008
Insurance
AIG: Where Did the Cash Go? [ANALYSIS] ·
American International Group has declined requests to detail how it has blown through $90 billion of a $123 billion government loan in less than a month, and forensic analysts are now pouring over its financial records, questioning whether irregular accounting of derivatives contracts masked pre-existing losses. (NYT)
Treasury, Markets Brace For Insurance Earnings ·
Analysts expect Hartford Financial, Prudential Financial and MetLife to report steep third-quarter losses late Wednesday, increasing pressure on the U.S. Treasury to expand its $700 billion bailout program to include the insurance sector. (CNNMoney)
Travelers CEO Shuns Treasury Rescue Money ·
Travelers Chairman and CEO Jay Fishman sent a letter to U.S. Treasury Secretary Henry Paulson insisiting his property and casualty insurer does not require federal assistance from the $700 billion bailout program. Fishman said the government should preserve the funds for "more acute problems." (AP)
Public Pension Funds Lose 14.8% In 2008 ·
Northern Trust estimates that U.S. public pension funds have dropped 14.8% in value this year as volatile stock markets roiled portfolios. The declines comes as 27 of the 65 largest pension funds still try to recover deficits from the 2001 downturn. (Washington Post)
Insurers May Tap Treasury For Remaining $90B ·
U.S. insurers are reportedly in talks to tap the remaining $90 billion of the U.S. Treasury's $250 billion bank recapitalization program. The American Council of Life Insurers confirmed that officials are exploring how to fit some insurers into the program without stigmatizing them. (Bloomberg, WSJ)
Treasury Closes Door For U.S., U.K. Insurers ·
The U.S. Treasury has reportedly signaled to American and British insurance companies that they will not have access to emergency funds through the government's $700 billion bailout program, emphasizing monies are reserved for "federally regulated financial institutions that lend money." (The Times)
Dinallo Calls CDS Bets “Legalized Gambling” [VIDEO] ·
New York Insurance Superintendent Eric Dinallo said Sunday that the multi-trillion credit default swap market at the heart of the financial meltdown is "legalized gambling," condoned unanimously by Congress in an obscure 2000 bill that overturned state "bucket shop" laws and removed derivatives from the purview of federal oversight. (60 Minutes)
Pension Agency Loses $5B On Stocks ·
The Pension Benefit Guarantee Corp., which insures pension benefits for 44 million Americans, told Congress Friday it lost $4.9 billion from stock investments through the fiscal year ended September. PBGC is currently under fire for considering a more equity-based portfolio strategy. (WSJ)
Treasury Explores Stakes In U.S. Insurers ·
The U.S. Treasury is reportedly considering taking equity stakes in some U.S. insurance companies, whose long-term investments and stock prices have been roiled by the financial crisis. As part of the plan, the insurers could also potentially sell bad assets to the government. (WSJ)
AIG Taps $90B From Fed Reserve Credit Line ·
The New York Federal Reserve confirmed American International Group has tapped $90.3 billion from the U.S. government, roughly 75% of the $123 billion credit line extended in September to help it avert bankruptcy.(Bloomberg)
AIG’s Liddy Says U.S. Loan “May Not Be Enough” ·
American International Group's CEO Edward Liddy said late Wednesday that the $123 billion loan extended to the insurer by the U.S. government "may not be enough" if capital markets continue to decline and force the company to post more collateral. (Bloomberg)
PBGC Discloses $3.1B Loss On Stocks ·
Pension Benefit Guaranty Corp, the government agency that insures private-sector pension plans for roughly 44 million Americans, confirmed it lost $3.1 billion in stock investments in its trust fund in the 11 months ended August 31st. (Washington Post)
AIG Agrees To Freeze Ex-CEO Payments, Bonus Pool ·
American International Group agreed Wednesday to freeze $19 million in payments to former chief executive Martin Sullivan at the request of New York Attorney General Andrew Cuomo. AIG also said it would block distributions from a $600 million deferred compensation and bonus pool. (CNN Money)
AIG Halts Lobbying Under Congressional Pressure ·
American International Group said Monday it will suspend its lobbying activities while it conducts an overall expense review. The decision comes days after lawmakers warned the insurer not to use its $85 billion government loan to fight tougher mortgage-industry regulations. (WSJ)
