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On Wednesday Moody’s Investors Service reported that it has placed the senior unsecured debt rating of Hartford Financial Services on review for a possible downgrade. The agency rates Hartford “A2”, or the sixth-highest investment grade. A full $6.5 billion of securities are affected by the action. In a statement by Moody’s, the move comes after… Continue reading Moody’s Places Hartford Financial on Review

Markets lost ground, erasing earlier gains as nervous investors remain concerned that the financial crisis would lead to a world recession, and after a coordinated rate cut by major central banks failed to unlock frozen credit markets, putting pressure on officials to take further action.      US shares opened higher but then fell after a… Continue reading Global Markets Shaky as Fears Persist, Credit Remains Frozen

We reported in the “Daily Newsflash” early on Wednesday, along with many other news services, that during the House Oversight and Government Reform Committee hearing held on October 7 lawmakers criticized American International Group Inc. (AIG) for attending what they characterized as an “executive retreat” just days after receiving an $85 billion loan credit facility… Continue reading AIG Says Congress Mischaracterized Subsidiary’s Conference as Retreat

The UK government has announced a package of measures aimed at rescuing the banking system that could add up to £500 billion ($880 billion).    It will initially make extra capital available to eight of the UK’s largest banks and building societies in return for preference shares in them.    It is “designed to put… Continue reading UK Announces Banking Rescue Plan

The biggest U.S. life insurer, MetLife Inc., plans to raise capital and cut jobs after saying third-quarter profit fell as much as 48 percent.    In a statement yesterday, the New York-based MetLife announced that it is selling 75 million shares, valued at $2.8 billion at current prices. The insurer wants to assure investors it… Continue reading MetLife Announces Plans to Raise Capital, Cut Jobs; Sees Shares Drop

New York State Insurance Superintendent Eric Dinallo appeared today before the U.S. House Committee on Oversight and Government Reform at a hearing titled, “The Causes and Effects of the AIG Bailout.” Dinallo outlined the steps that the New York State Insurance Department — and state insurance regulators from across the nation — have taken to… Continue reading Insurance Regulators Explain Oversight Effectiveness During AIG Bailout Hearing

Pending sales of existing U.S. homes unexpectedly jumped in August to the highest level in over a year, data from a real estate trade group showed on Wednesday.    The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 percent in August to 93.4 from an updwardly revised… Continue reading Pending Home Sales Rise in August

The coordinated rate cuts by global central banks, including the Federal Reserve, did not allay investor fears that the credit markets would begin lending money and a global recession would be averted. Stocks in early trading on Wednesday continued their volatility, moving significantly up when the market first opened and then swinging wildly the other… Continue reading Rate Cut Doesn’t Calm Markets

Six central banks, including the U.S. Federal Reserve, have cut interest rates by half a percentage point in an effort to steady the faltering global economy. The U.S. central bank cut its rates from 2% to 1.5%. The Bank of England put the interest rate at 4.5% from 5%, and the European Central Bank (ECB)… Continue reading Central Banks Around the World Coordinate Rate Cuts

On Friday, October 3, President Bush signed into law H.R. 1424, the “Emergency Economic Stabilization Act of 2008.” The House of Representatives approved the legislation by a vote of 263-171 earlier that day. In its original form, the U.S. Treasury had proposed H.R. 1424 as must-pass legislation to rescue collapsing credit markets stemming from the… Continue reading PCI Advocates for Equitable Treatment of Insurers in Emergency Economic Stabilization Act