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Federal Deposit Insurance Corp. Chairman Sheila Bair told a Senate panel Thursday that a new plan is underway to motivate mortgage servicers to modify loans by offering them federal loan guarantees and credit enhancements. Bair said the FDIC is working “closely and creatively” with the Treasury on the plan, saying the recently passed financial rescue… Continue reading FDIC Also Pushing for New Plan to Help Homeowners Avoid Foreclosures

The largest U.S. public pension fund, CalPERS, has reported on its website that it may need to tap California public employers for more money if heavy investment losses it suffered in recent months do not reverse.    The California Public Employees’ Retirement System said that its assets have declined by more than 20%, or around… Continue reading California Public Retirement Plan May Need Additional Employer Contributions to Stem Losses

The world’s third largest insurance broker, Willis Group Holdings Ltd., said on Wednesday that net income fell 46 percent in the third quarter, hurt by costs linked to its acquisition of rival Hilb Rogal & Hobbs.    Willis said net earnings dropped to $36 million, or 25 cents a share, from $67 million, or 46… Continue reading Third-Quarter Earnings for Willis Drop

According to a person familiar with the matter, Goldman Sachs Group Inc., the only firm among Wall Street’s five biggest to remain profitable through the credit crisis, will shed about 3,200 workers, or 10 percent of its staff, as the revenue outlook worsens.    The cuts add to more than 130,000 jobs eliminated in the… Continue reading Goldman Sacks to Lay-off Ten Percent of Staff

Representatives from the Property Casualty Insurers Association of America (PCI) joined other international trade associations October 15-17 in Budapest, Hungary for the annual meeting of the International Association of Insurance Supervisors (IAIS) to discuss developments affecting the international insurance industry in light of current financial crisis. Insurance associations around the globe agreed that overall, the… Continue reading PCI Urges Risk-Focused Regulation at International Insurance Meeting

Former Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and that he sees more layoffs and a jump in unemployment ahead.      Greenspan said the current global financial crisis is a “once in a century credit tsunami” that policymakers did not anticipate.      Greenspan… Continue reading Greenspan Testifies in Financial Crisis Hearing, ‘Shocked’ at Credit Breakdown

According to e-mails released by a U.S. House panel, employees at Moody’s Investors Service and Standard & Poor’s privately questioned the value of some mortgage-backed securities that were given creditworthy ratings, saying they created a “monster.”               “Let’s hope we are all wealthy and retired by the time this house of cards falters,” one… Continue reading Emails from Moody’s, S&P Show ‘Monster’ in the Making

In a hearing today before the House Oversight Committee, the credit rating agencies are being portrayed as profit-hungry institutions that would give any deal their blessing for the right price.    Case in point: This instant message exchange between two unidentified Standard & Poor’s officials about a mortgage-backed security deal on 4/5/2007:    Official #1:… Continue reading BREAKING NEWS: S&P OFFICIALS: ‘We’d Do a Deal ‘Structured by Cows’

The insurance and financial services industry is at a crossroads. In the midst of the biggest financial crisis since the Great Depression, the combination of volatile economic conditions and a rapidly changing competitive landscape has many firms facing a challenging future. As the situation continues to evolve, Towers Perrin experts Patricia L. Guinn, Managing Director,… Continue reading Towers Perrin’s Perspective on How Financial Crisis is Impacting the Insurance Industry

The Risk and Insurance Management Society, Inc. (RIMS) commends New York State Insurance Department Superintendent Eric Dinallo for asserting a strict policy on contract certainty for brokers and insurers operating in-state, calling for 90 percent of cases to achieve contract certainty within 30 days of inception and enforcing that service providers are in compliance within… Continue reading RIMS Endorses NY Insurance Superintendent’s Policy on Contract Certainty