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In its unprecedented role in propping up one of the world’s largest insurers, the Federal Reserve will be appointing trustees to oversee the U.S. government’s stake in American International Group Inc. (AIG).      The central bank plans to select three individuals with business experience to manage the public’s nearly 80% stake in AIG. The move… Continue reading Fed to Appoint Trustees to Oversee its AIG Stake

On Monday Morgan Stanley announced the completion of its deal with Japanese bank Mitsubishi UFJ Financial Group to receive a $9 billion investment. The closing comes a day earlier than expected, and with revised parameters for what Mitsubishi will receive for its investment. The deal, which gives Mitsubishi a 21 percent stake in Morgan Stanley,… Continue reading Morgan Stanley Gets Cash Infusion from Japanese Bank

G-7 finance ministers and central bankers, gathering in Washington today, will pledge to act together to prevent failures, while avoiding specific commitments, an official reported on condition of anonymity.     Part of the discussions will include Britain’s proposal to guarantee lending between banks, but according to this official the proposal will not embraced today. … Continue reading G7 Meeting Today to Tackle Global Economic Crisis

New Jersey Gov. Jon Corzine signed into law a package of workers’ compensation bills designed to address concerns about the efficiency and responsiveness of the state system. The new workers compensation measures in the state will expand public representation on the rate-setting board, boost the authority of workers’ comp judges to enforce their decisions and… Continue reading NJ Governor Signs New WC Measures

Speaking from the White House Friday morning, President George W. Bush has promised the American people the U.S. government is working “aggressively” to restore stability to the economy. He said recent market turmoil was being driven by “uncertainty and fear”.    He spoke as world markets tumbled amid rising fears of a global recession, despite… Continue reading President Bush Says Government is Working Aggressively On Bringing Back Stability

American International Group Inc. (AIG) canceled a scheduled conference at Half Moon Bay, about 30 miles south of San Francisco in the midst of criticism aimed at the insurer over a conference held by one of its subsidiaries last month. The upcoming conference was designed to “motivate and educate” about 150 independent agents who sell… Continue reading AIG Cancels an Upcoming Conference for Independent Agents

The International Monetary Fund (IMF) has activated an emergency finance mechanism to help countries hit by the financial crisis.      IMF chief Dominique Strauss-Khan said the lending procedure would allow the IMF to react quickly to support countries facing funding problems.      This mechanism was also used during the Asian financial crisis in 1997, and… Continue reading IMF Activates Emergency Finance

The period 2003-2007 was very favorable for the homeowners insurance line after the bleak 20-year period that preceded it. While returns relative to risk still do not compare favorably with other major lines, this five-year period did represent a marked improvement in financial performance for the line, according to a new study by Conning Research… Continue reading Study Looks at Impact of Housing Market and Regulatory Pressures on Homeowners Insurance

Bad faith remedies designed to protect insurance consumers from unfair claim settlement practices can potentially harm consumers, warns a new report published by the National Association of Mutual Insurance Companies (NAMIC). The report, “First-Party Insurance Bad Faith Liability: Law, Theory, and Economic Consequences,” co-authored by Dr. Sharon Tennyson of Cornell University and Dr. William Warfel… Continue reading New Study Shows Unintended Consequences of First-Party Bad Faith Liability

Working with federal agencies and universities as well as the insurance and energy industries, the National Center for Atmospheric Research has launched an intensive study to examine how global warming will influence hurricanes during the next few decades. The goal of the project is to better inform coastal communities, offshore drilling operations, and other interests… Continue reading Study Examines Effects of Global Warming on Hurricanes