Author: Farkas Laura

In the latest in the Wall Street crisis, Morgan Stanley, one of the two last major American investment banks, is considering a merger with the Wachovia Corporation or another bank, according to people briefed on the discussions.    Morgan Stanley’s chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest… Continue reading BREAKING NEWS: Morgan Stanley Talking Merger Possibility with Wachovia

The government’s bailout of insurer American International Group Inc. (AIG) could be just what is needed to bring federal intervention to the insurance industry, historically regulated by individual states. Proponents of providing some form of federal regulation or oversight of the insurance industry seized on the Fed’s decision to provide an $85 billion lifeline to… Continue reading AIG’s Government Bailout May Boost Need for OFC

While American International Group Inc. fights to stay afloat, its state-domiciled subsidiaries remain sound, state regulators said as officials held talks on the AIG units in their jurisdictions.    “It’s changing by the minute at the holding company level,” Connecticut Insurance Commissioner Thomas Sullivan said. “Nothing’s changing at the subsidiary company.”    Regulators from Pennsylvania,… Continue reading State Insurance Commissioners Say AIG Subsidiaries Solvent

The Securities and Exchange Commission issued three new rules, effective at the start of trading Thursday, aimed at curbing a certain type of short-selling Wall Street and others have blamed for driving down financial stocks.    The new moves are aimed at tightening up the existing rules and to make it more difficult for traders… Continue reading SEC Issues New Rules to Curb Some Short Selling

Falling below expectations to the lowest level in 17 years, home construction tumbled a second month in a row during August, according to the Commerce Department. Housing starts decreased 6.2% last month to a seasonally adjusted 895,000 annual rate. Single-family home groundbreakings also declined, and building permits fell sharply. Economists surveyed by Dow Jones Newswires… Continue reading Housing Starts the Lowest in 17 Years

According to people familiar with the matter, as part of the U.S. government’s rescue of the insurer, American International Group Inc. (AIG) Chief Executive Officer Robert Willumstad will be replaced by former Allstate Corp. chief Edward Liddy.    The Wall Street Journal reported that Treasury Secretary Henry Paulson insisted that Mr. Willumstad step aside as… Continue reading The Buzz: AIG’s Willumstad to be Replaced with Allstate’s Edward Liddy

New York State Insurance Superintendent Eric Dinallo in an interview with CNBC said that insurance companies have gotten away from their core competencies and that is “dangerous.”    “There is a theory that diversification of financial services activities gets you risk management, but it is only true if you stay within your core competencies,” Dinallo… Continue reading Dinallo: Insurers’ Troubles Due to Departure from Core Competencies

Reports are buzzing about on Wall Street that Morgan Stanley officials are weighing whether the firm should remain independent or merge with a bank given the recent turbulence in the company’s stock.      As of late Tuesday Morgan officials were not in merger discussions, according to people close to the matter. But senior people at… Continue reading Morgan Stanley Looking to Avoid Lehman Fate with Talk of Merger

The Board of Directors of American International Group, Inc. (NYSE:AIG) issued the following statement in response to today’s announcement by the Federal Reserve Board that the Federal Reserve Bank of New York is providing a two-year, $85 billion secured revolving credit facility to AIG that will ensure the company can meet its liquidity needs:   … Continue reading AIG Releases Statement on Fed’s Loan Plan

The following is the text of a statement released by the Federal Reserve on Tuesday regarding insurer American International Group Inc (AIG):          The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International… Continue reading Fed Releases Official Statement on AIG