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President George W. Bush in a statement today defended recent U.S. government’s decisions in helping financial markets cope with the “serious challenges” stemming from the long-running credit crisis.    “The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence,” Mr. Bush said in… Continue reading President Bush Backs Fed’s Decision on AIG

New York Insurance Superintendent Eric Dinallo and Pennsylvania Insurance Commissioner Joel Ario will oversee a National Association of Insurance Commissioners (NAIC) task force created to expedite the way for American International Group Inc.’s (AIG) sale of insurance assets. Creation of the task force was approved by commissioners on Tuesday afternoon, as federal and state regulators… Continue reading Dinallo, Ario to Lead NAIC Task Force to Approve Sale of AIG Assets

In the wake of the crisis on Wall Street, today at 3pm EST, Standard & Poor’s Ratings Services is holding a telephone conference call to discuss the recent credit events shaking the financial institutions sector.      According to the S&P bulletin, discussions will include the “bankruptcy filing of Lehman Brothers, the acquisition of Merrill Lynch… Continue reading S&P to Discuss Credit Crunch in Teleconference Today

The Federal Reserve’s decision to throw American International Group Inc. (AIG) an $85 billion lifeline as it was tinkering on bankruptcy has widespread implications. Should this be something the government does? Should they be in the business of bailing out failed companies? And should taxpayers get stuck with the bill? So far the tab for… Continue reading Looking at the Fed Rescue of AIG and More

On Wednesday revised estimates of insured losses from Hurricane Ike were released by Risk Management Solutions (RMS), putting the costs at between $7 billion and $12 billion.    Originally, RMS estimated the losses to be between $6 billion and $16 billion; the revised range reflects damage-report analysis and on-site assessments, according to the catastrophe modeler. … Continue reading RMS Revises Ike Loss Estimates

Warren Buffett’s MidAmerican Energy Holdings Co. agreed to buy Constellation Energy Group Inc. for about $4.7 billion, snapping up the largest U.S. power marketer at less than half its market value prior to this week.      The cash deal is worth $26.50 a share, the companies said today in a statement. That’s 7 percent higher… Continue reading Buffet’s MidAmerican Energy Purchases Constellation at Bargain Price

Markets regained some poise on Thursday trading, propped up by news that six of the world’s top central banks joined forces to steps to calm credit markets. The banks will release $180bn to lift the amount of credit available. US stocks opened higher, echoing gains in Europe. Lloyds TSB’s takeover of UK lender HBOS also… Continue reading Central Banks Move to Pump Up Market

People familiar with the matter have said that Washington Mutual has put itself up for auction.       The unsurprising announcement comes as the bank, which has suffered badly from losses on mortgages it had made, continues to stumble. Shares in Washington Mutual fell nearly 10 percent on Wednesday to $2.09; they have plunged 94… Continue reading BREAKING NEWS: WaMu Auctions Itself

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