Author: Farkas Laura

A major round of layoffs at JP Morgan Chase have begun in the firm’s vaunted investment banking department, letting go dozens of executives in an effort to downsize the unit amid a massive slowdown in business.    People at the firm say at least two hundred executives were laid off over the past two days… Continue reading Major Layoffs Begin at JP Morgan Chase

Citing losses from its exposure to the U.S. mortgage market and credit derivatives, Moody’s Investors Service cut American International Group’s (AIG) debt rating.    Moody’s, which had placed the world’s largest insurers’ rating on review for a possible downgrade after the insurer earlier this month unveiled a $7.8 billion first-quarter net loss, said the outlook… Continue reading Moody’s Cuts AIG’s Debt Rating

Patrick G. Ryan, founder and executive chairman of Aon Corporation, announced this week that he intends to retire from Aon effective August 1, 2008. Aon is the world’s largest insurance and reinsurance intermediary, and a global leader in human capital consulting.      Ryan commented, “The transition to a new management team under the sound leadership… Continue reading Ryan Announces Intention to Retire from Aon

On Wednesday President Bush signed legislation to protect people from losing their jobs or health insurance when genetic testing reveals they are susceptible to costly diseases.     Broadly embraced in Congress, the anti-discrimination measure aims to ensure that advances in DNA testing won’t end up being used against people. The new law forbids employers… Continue reading President Bush Signs Genetic Anti-Discrimination Legislation

On behalf of the National Association of Insurance Commissioners (NAIC), Florida Insurance Commissioner Kevin McCarty testified yesterday before the U.S. House Financial Services Committee’s Subcommittee on Oversight and Investigations hearing titled, “The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance.”    “Proponents argue that credit-based insurance scores are predictive of an… Continue reading NAIC Testified before Congress on Use of Insurance Credit-Based Scoring

Following AIG’s successful raising of $17 billion in capital, Standard & Poor’s Corp. has affirmed its AA+ counter-party credit and financial strength ratings on American International Group Inc.’s core operating subsidiaries.    The outlook on the ratings is negative, S&P said.    In addition, the ratings agency affirmed the New York-based insurer’s AA- counter-party credit… Continue reading AIG’s S&P AA+ Rating Affirmed

As U.S. banks try to clean up the subprime mess, tougher versions of old lending rules are now being reintroduced and consumers are finding it harder to get loans.    The American dream of home ownership is moving further out of reach for people of modest means. Even affluent buyers, who took advantage the last… Continue reading The American Dream: Low Downpayments are A Thing of the Past

A.M. Best Co. has downgraded the financial strength rating (FSR) to B+ (Good) from B++ (Good) and issuer credit rating (ICR) to ‘bbb-” from ‘bbb” of American Farmers & Ranchers Mutual Insurance Company (Oklahoma City, OK). In addition, A.M. Best has assigned an FSR of B+ (Good) and ICRs of ‘bbb-” to American Farmers &… Continue reading A.M. Best Downgrades Ratings of American Farmers & Ranchers Mutual Insurance Company; Places Ratings Under Review

Consumers benefit when insurance companies use credit-based insurance scoring in underwriting and rating policies. That’s the message the National Association of Mutual Insurance Companies (NAMIC) will deliver to a congressional panel examining insurers’ use of credit-based insurance scoring today. The House Financial Services’ Subcommittee on Oversight and Investigations’ hearing today is the second on the… Continue reading NAMIC to Congress: Credit-Based Insurance Scoring Benefits Consumers

The Wall Street Journal reported on Wednesday that former chief executive of American International Group (AIG), Maurice “Hank” Greenberg, may face civil charges for his alleged role in an effort to improperly boost the insurer’s financials. The publication reported that Greenberg received a “wells notice” from the Securities and Exchange Commission on Friday and may… Continue reading WSJ Reports that Greenberg May Face SEC Civil Charges in Gen Re Case