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Yesterday the “Daily News Flash” reported that the Federal government was considering changing the terms of the $85 billion loan program made to struggling American International Group Inc. (AIG). The “Wall Street Journal” today in an article underscored the fact that the federal officials are considering ways to ease the financial pressure on the insurer.… Continue reading WSJ: Government Looking into Ways to Ease Financial Pressure at AIG

Goldman Sachs Group Inc. forecast the deepest U.S. economic recession since 1982 after the unemployment rate climbed to a 14-year high and payrolls tumbled for a 10th consecutive month. The economy will shrink 3.5 percent in the fourth quarter and 2 percent in the first quarter, compared with previous estimates of 2 percent and 1… Continue reading Goldman Forecasts Worse Recession Since ’82

The latest US automaker to report dismal results, General Motors posted a bigger than expected loss for the third quarter. Earlier Friday, Ford posted a worse-than-expected $2.98 billion quarterly operating loss and told investors that it would look to cut salary expenses by 10 percent, a move that follows a 15 percent cut earlier this… Continue reading Ford, GM Losses Hit Harder Than Anticipated; Automakers Seek $50B in Federal Aid

Official figures show that the U.S. jobless rate rose to 6.5% in October, the highest rate since March 1994. Figures from the U.S. Labor Department showed employers cut 240,000 jobs in October, the 10th month in a row that the economy has lost jobs. The increase means that in the first 10 months of this… Continue reading US Jobless Rate Up to 6.5% in October

A new committee of top-level insurance executives will generate industry input toward federal regulatory reform measures that loom for the financial services sector on Capitol Hill.    “We recognize that this is the primary issue,” said Ben McKay, senior vice president for federal affairs for the Property Casualty Insurers Association of America. “We knew it… Continue reading P/C Execs to Form Committee to Provide Congress with Feedback on Regulatory Reform

Updated forecasts regarding the effect of the subprime mortgage and credit crisis on directors and officers and errors and omissions insurers were released by industry analysts with Advisen Ltd. on Thursday, projecting $9.6 billion in losses for both lines.    Advisen estimates $3.7 billion in E&O losses and up to $5.9 billion in D&O losses… Continue reading Advisen Projects Losses of $9.6B on D&O and E&O Insurers

With a workable majority in Congress and control of the White House, Democrats are preparing to deal with a faltering economy and several insurance issues that are likely to be on the front burner.    Democrats as of Wednesday, November 5, are projected to gain at least 18 seats in the House, giving them a… Continue reading New Congress to Tackle TARP, OFC, Credit Scoring

Faced with a weakening economy and the prospect of mounting losses, Citigroup Inc. and Goldman Sachs Group Inc. began firing workers as part of the firms’ plans to cut more than 12,000 jobs. Goldman, which converted last month from the biggest U.S. securities firm into a commercial bank, yesterday began telling about 3,200 employees, or… Continue reading Job Cuts Begin at Citigroup, Goldman

Cutting its key rate by 1.5 percentage points to the lowest level since 1995, the Bank of England led European central banks in reducing borrowing costs to counter the worst financial crisis in almost a century. The U.K. central bank reduced its key rate by the most since 1992, taking it to 3 percent. The… Continue reading England’s Central Bank Cuts Rate by 1.5 Percentage Points

Voters spoke in record numbers November 4 and we now know that Barack Obama is President-Elect. He and other officials elected on November 4 will take office amid a severe financial crisis—and they will act quickly and decisively on many issues that will affect the property casualty industry. To view the outcomes of races nationwide… Continue reading PCI Releases Report on Election Outcome on Industry