Author: Farkas Laura

According to Oppenheimer analyst Meredith Whitney, credit problems are worsening and it is expected that Merrill Lynch and UBS will lose money this quarter and suffer write-downs of $6 billion and $11.1 billion, respectively. Her forecasts were issued late Wednesday, after bank shares tumbled following her decision a day earlier to slash estimates for Citigroup,… Continue reading Oppenheimer Analyst Expects Likelihood of Losses, Write-downs at Merrill and UBS

According to the S&P report “ERM Development in the Insurance Sector Could Gain Strength in 2008,” published on S&P’s RatingsDirect this week, a review of ERM practices of rated companies in 2006 showed several dozen companies developing systems to support better ERM practices. “We predicted that 10 to 15 of those companies could receive improved… Continue reading S&P: Review of Industry ERM Practices Shows Improvement

According to the Michael White-Symetra Bank Fee Income Report™ (Bank-FIR), bank insurance brokerage fee income hovered near record levels in 2007, reaching a total of $4.04 billion, only 0.8% lower than the record $4.08 billion attained in 2006. The report, compiled by Michael White Associates, LLC (MWA) and sponsored by Symetra Financial, measures and benchmarks… Continue reading Banks’ Insurance Brokerage Fees at Near Record Levels for 2007

In court papers filed in Chicago, American International Group Inc., which set aside $301 million to repay state workers’ compensation programs it shortchanged, the insurance giant claims Liberty Mutual Group Inc., Hartford Financial Services Group Inc. and a predecessor of Travelers Cos. broke federal racketeering laws by “conspiring” to dump shared costs on AIG while… Continue reading AIG Claims Rivals Broke Racketeering Laws in WC Dispute

According to a report by the New York City’s Independent Budget Office, more than 20,000 jobs in the high-paying financial sector of the city may be at risk over the next two years as the crisis in mortgage markets drives down Wall Street’s profits. The report issued on Monday estimated that Wall Street’s profits for… Continue reading Mortgage Fall-Out on Wall Street May Result in Job Losses of 20,000 Over Two Years

On Tuesday, an emergency order to stall JPMorgan Chase from moving forward with its takeover of Bear Stearns was filed by two U.S. pension funds in a Delaware court. JPMorgan Chase & Co has agreed to buy 95 million newly issued Bear shares, or a 39.5 percent stake. It is widely seen as giving JPMorgan… Continue reading Bear Stearns Investors File an Emergency Order to Stop JPMorgan’s Take-over

State legislators in Florida stated on Monday that there are deep flaws in the sweeping property insurance law they passed almost unanimously last year to help lower homeowner insurance rates. The House Insurance Committee held a hearing Monday aimed at building support to reverse last year’s legislation. Among other changes, the 2007 legislation expanded the… Continue reading FL Legislature Sees Deep Flaws in Property Insurance Law Passed Last Year

U.S. home prices are started to decline as we see a wave of foreclosures with lenders putting more properties on the market and buyers now showing an interest to buy.     How America’s lenders manage this fire sale will be crucial to determining how long the housing market stays in its decline — and… Continue reading Housing Prices Decline as Foreclosures Rise

The largest U.S. mortgage insurer, MGIC Investment Group raised $745 million, which was more than it projected, The money was as a result of the sale of stock and convertible debt after a record fourth-quarter loss. The company dropped 6.6 percent to $12.42 in early trading. Underwriters sold 37.3 million shares of MGIC for $11.25… Continue reading Mortgage Insurer MGIC Raises More Capital than Expected

Attempting to raise nearly $1 billion this week in order to avoid bankruptcy, Thornburg Mortgage Inc on Monday announced that it has changed its by-laws to allow a single investor to buy up to $300 million of stock.    Thornburg, in a filing late yesterday with the U.S. Securities and Exchange Commission, said its board… Continue reading Mortgage Lender Changes Bylaws to Avoid Bankruptcy